KAJANG (March 15): Malaysia's total property transaction value hit RM179.07 billion in 2022, the highest-ever value recorded by the National Property Information Centre (Napic) since 2001.
Last year's transaction value was 23.6% year-on-year (y-o-y) higher than RM144.87 billion posted for 2021. As for total transactions, the 2022 tally also saw double-digit growth, increasing by 29.5% y-o-y to 389,000, from 300,497 transactions in 2021, Napic said in a statement in conjunction with the release of its Property Market Report 2022. Napic director Aina Edayu Ahmad said the strong economic growth last year bolstered the growth in the property market. "The homeownership campaign also helped to boost property market activities," she told a press conference. Commenting on the outlook for the property market this year, Aina said it depends on market sentiment, especially from property developers and households. She viewed that the current overnight policy rate (OPR) of 2.75% remains accommodative for property buyers when it comes to financing, citing that this is because the current OPR rate is still below than the pre-pandemic level of 3%. Meanwhile, Napic said property market performance is expected to grow in line with the moderately lower economic growth projected for 2023, given the unpredictable external environment. "Notwithstanding this, the accommodative policies, continuous government support, and execution of all planned measures outlined in the revised Budget 2023, and the proper implementation of strategies and initiatives under the 12th Malaysia Plan are expected to remain supportive of the property sector," it added. The Ministry of Finance previously projected full-year growth in gross domestic product (GDP) to moderate to between 4% and 5% in 2023 amid global slowdown. GDP growth stood at 8.7% in 2022 — higher than a 3.1% growth posted for 2021 — the fastest full-year growth in 22 years, and surpassing the government's forecast for 6.5% to 7%.
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3/13/2023 0 Comments "Less than five" out of 10 buyers have less than RM350,000 budget to buy properties: PropertyGuruKUALA LUMPUR: Affordability issues continue to be a concern among homebuyers as the disparity between income and house prices widen.
According to the PropertyGuru Malaysia Consumer Sentiment Study for the first half of 2023, almost half of the 1,000 respondents polled or 47 per cent had a budget of less than RM350,000 for buying properties. The study found that half of the Malaysian consumers consider themselves unable to buy a house without government assistance, with nearly three in four respondents called for more government support to address the rising inflation. PropertyGuru.com.my and iProperty.com.my country manager Sheldon Fernandez said the continued financial challenges that consumers faced as seen in the study further highlighted the importance of government financial assistance for Malaysians' journeys toward homeownership. "Although the recent increase in minimum wage was a welcome relief, the rising inflation also brought higher daily household expenses, leaving Malaysians with lesser monthly savings and a need to minimise additional expenditures," he said. Among calls for government-led financial support, the study revealed that two in five Malaysians continued to not have a clear understanding of the eligibility terms for affordable housing. It also revealed that this was more prevalent among low-income earners and those within the age range of 20 to 29. On the other hand, the study also found that over half (58 per cent) of Malaysian consumers with the intention to purchase a property have achieved the halfway point of their savings target, driven mostly by millennials between the ages of 22 to 41 and mid-income earners. "What we are seeing in the market lately is that potential homebuyers do have the intention to buy, though that intention is hampered by affordability issues that are expected to linger until the overall cost of living has stabilised. "With this, we expect consumers to continue prioritising renting over purchasing property in the upcoming year," said Fernandez. Following the Batang Kali landslide tragedy in December last year, climate change continued to be a significant concern for 98 per cent of Malaysian respondents, especially among respondents aged 50 and above. Meanwhile, the study saw that 52 per cent of consumers were willing to pay a higher insurance premium for protection against climate change effects on their property. Considering the recent surge in weather-related disasters, 70 per cent of Malaysians expressed dissatisfaction with national efforts to mitigate the effects of climate change in the country. "With the recent tragedy of floods across the country that has affected families nationwide, Malaysians are especially concerned about the topic of natural disasters. "Measures to reflect the changing needs of consumers due to external factors from climate change and the ongoing economic recession need to be taken to enable consumers to achieve their homeownership goals," said Fernandez. He added that such initiative that the company supported was the continued stamp duty exemption, as announced under 2023 Budget, which aimed to assist first-time homebuyers to get onto the property ladder. "We believe that this, along with the Government's Syarikat Jaminan Kredit Perumahan home loan scheme to assist borrowers with unstable incomes, will provide crucial support for Malaysians struggling to maintain a good quality of life. "This is particularly so for young Malaysians who are just beginning their property journeys, and we look forward to being part of the journey in achieving their homeownership dreams," he said. The study's respondents comprised a mix of white-collar professionals, blue-collar workers and businessmen, with respondents in the mid to high-income segment (65 per cent) and low-income (35 per cent). THE latest reports from real estate experts show that the market is set to experience a surge in prices this year due to the continued increase in the cost of construction materials. The trend is expected to persist for the next 12 months, which will have a significant impact on the housing market. The Real Estate and Housing Developers’ Association Malaysia (Rehda) said today that its members are likely to raise housing prices this year due to a variety of factors. President Datuk NK Tong (picture) said the rising cost of construction materials is attributed to a combination of factors, including supply chain disruptions, increased demand for raw materials and the cost of steel and other building materials having increased dramatically in recent months, leading to higher construction costs for builders and developers. He added that the Rehda Property Industry Survey 2H22 (second half of 2022) and Market Outlook for 2023 report had shown that 68% of developers expect higher costs to continue for more than 12 months. “The findings involved 136 respondents (developers) and as many as 63% of developers chose to increase the sale price of real estate as the most crucial step to overcome the increase in the cost of building materials,” he said at a press conference. According to the same report, residential launches in Malaysia have seen a range of selling prices, with certain price points being more popular among developers than others. In particular, mid-range and high-end properties were the most commonly launched, with developers targeting different buyer segments based on their preferences and affordability. The data showed that the most launched selling price range for residential properties in Malaysia was between RM250,000 and RM500,000, accounting for more than 39% of all residential launches in the 2H of last year. “This range was particularly popular for mid-range properties such as two-three-storey terrace houses, apartments and condominiums, which offer spacious living areas,” he added. On the higher end of the market, the data showed that properties priced between RM500,000 and RM700,000 were the second most popular selling price range, accounting for around 30% of all residential launches. The majority of units sold are from Seremban, Negri Sembilan, and Johor Baru, Johor, areas. The report also found that two-three-storey terrace houses and serviced apartments were the most sold properties in Malaysia in the past year. “These two types of properties accounted for a significant portion of the overall property market, with their popularity driven by various factors such as affordability, location and amenities,” Tong said. The popularity of two-three-storey terrace houses can be attributed to their affordability and suitability for families, particularly those with children. Many two-three-storey terrace houses are located in suburban areas and offer spacious living spaces, multiple bedrooms and ample outdoor areas such as gardens and yards. These properties also provide residents with easy access to amenities such as schools, shopping centres and recreational facilities. On the other hand, serviced apartments have become increasingly popular among young professionals and investors looking for a more convenient and modern living experience. Serviced apartments typically offer residents access to a range of amenities such as swimming pools, gyms and concierge services, and are often located in prime areas such as city centres or tourist hotspots. “While the demand for two-three-storey terrace houses and serviced apartments remains high, the property market in Malaysia is still facing challenges that could impact sales and prices,” Tong said. However, he remained optimistic about the industry’s long-term prospects and believed that the government and industry players would find innovative solutions to address these challenges. As Malaysia’s economy struggles to recover from the impact of the Covid-19 pandemic, the number of unsold house units in the country continues to rise. According to the same report, 61% of respondents reported having unsold residential units in Malaysia in 2H22. The data also reveals that the bulk of the unsold units is priced at RM1 million or above (23%) attributed to several factors, including the tightening of lending policies by banks, unreleased Bumiputera lots and low demand. “However, we hope the industry has shown signs under the unity government, whose proactive approach has helped resolve pressing issues such as the labour shortage,” Tong concluded. |
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