With the dust having settled after the 13th General Elections, all eyes are now on the freshly elected government for strategies for the real estate sector.
While other issues such as increasing the minimum purchase price for
foreign buyers and reducing lending rates and stamp duties are also on
the wish list of most Malaysians, latest figures released by
PropertyGuru Group highlighted a continuing call for the government to
address the issue of home affordability.
In the latest Property Sentiment Survey (Q2 2013) by the leading
online property group, 76% feel that the government is not doing enough
to curb the current price increase. This is more acutely felt in regions
that have experienced a high foreign demand for residential properties,
namely Johor (69%) and Kuala Lumpur (81%).
While 35% out of the total of 851 respondents claim that the outlook
of the local property market will remain positive, four in five expect
prices to increase further in the next six months.
Respondents also seem to favour stricter market restrictions on
property ownership by foreigners, with nearly half supporting an
increase in the minimum purchase price from RM500,000 to RM1 million for
overseas buyers and investors wanting to buy properties in Penang and
Despite the growth in price, 74% of respondents intend to buy at
least one property type (either residential or commercial) within the
next six months, an increase of 10% as compared to the previous quarter.
This is because of the perception that the more expensive a property
becomes, the higher capital appreciation it will bring in the long term.
“There is a dilemma at play for Malaysians. As they see property
prices spiral up, they also see their assets appreciating in value. But
in the long term, they are also finding it more challenging to own
properties,” Added Value Singapore managing director Raymond Ng says.
“Affordability is also a bigger concern for the younger adult
population. There is no doubt that there are enough local funds to fuel
the market and allow the government to control prices a bit better
without relying on foreign investments. The challenge is finding the
sweet spot that will entice locals to invest locally while not turning
away all foreign investments.”
The survey was conducted by PropertyGuru Group in collaboration with
Added Value-Saffron Hill, a Singapore-based independent professional
Conducted since 2010, it is the only independent local survey to
measure property sentiments and expectations about the property market
It is also carried out across the group’s four key target markets of
Singapore, Malaysia, Indonesia and Thailand, attracting 4,062 online
respondents aged 21 to 69 who are influencers or decision makers on
“The results are consistent with figures from previous quarters where 75% of Malaysians find property to be expensive.
Kho says Malaysians want more affordable homes and are looking to the government to deliver.
“The message is clear; Malaysians want more affordable homes and are
looking to the government to deliver. PR1MA is a step in the right
direction, but Malaysians want more measures and existing measures to be
expedited, PropertyGuru.com Malaysia country manager Gerard Kho says.
Our cars are costing us our homes!