Real estate sector slowly improving, says PropertyGuru

KUALA LUMPUR: Malaysia is seeing slow improvement in the real estate market, according to PropertyGuru Malaysia.

In its Malaysia Property Market Report, the company said the Landed Property Sale Price Index rose 1.1 per cent quarter-on-quarter and 3.64 per cent year-on-year in the first quarter.

There was a 1.96 per cent quarter-on-quarter dip in the Landed Property Sale Demand Index, although it rose 5.21 per cent yearon-year.

PropertyGuru said landed homes continued to be the preferred option among potential buyers but affordability issues and financial difficulties resulted in the slower demand.

PropertyGuru and iProperty country manager for Malaysia Shylendra Nathan said consumer sentiments were dampened by the lingering effects of the Covid19 pandemic.

“With the attention on rising inflation, potential homebuyers are cautious, seeking restabilisation and improved job security.

“With the lack of financial incentives, buyers may be hesitant to move forward with their purchasing plans until the economy restabilises,” he said in a statement yesterday.

Nathan said consumer sentiment would likely only improve along with the nation’s economic recovery as the year progressed.

The High-Rise Property Sale Price Index showed that prices for stratified properties fell 0.23 per cent quarter-on-quarter in the first quarter.

However, the supply of highrise properties continued to increase, rising 3.25 per cent quarter-on-quarter. This indicates a price mismatch against buyer appetite on factors such as location, facilities and accessibility.

On the rental front, the HighRise Property Rental Price Index rose 0.91 per cent quarter-onquarter while the High-Rise Property Rental Demand Index recorded an increase of 6.08 per cent quarter-on-quarter.