"Less than five" out of 10 buyers have less than RM350,000 budget to buy properties: PropertyGuru

KUALA 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).