Property market abound with affordable options
KUALA LUMPUR: Subdued asking prices coupled with favourable government incentives have resulted in more affordable options for purchasing property, states PropertyGuru.
In a press statement, it noted that its Malaysia Property Market Index 1Q21 (MPMI) report has registered steady asking prices at 88.6 index points in 3Q and 4Q of 2020.
Although the index has remained unchanged, asking prices for properties in Malaysia have seen a drop quarter-onquarter (q-o-q) with Kuala Lumpur, Johor and Penang registering a drop of 1.8, 0.83 and 0.78 per cent respectively. Selangor is the only market with a slight increase of 0.84 per cent.
The National Property Information Centre (NAPIC) also revealed that 50.5 per cent of the new residential launches are properties priced below RM300,000, while those priced between RM300,001 to RM500,000 account for 24.7 per cent.
Landed properties dominated the new residential launches with 3,127 units launched in the quarter in review. This would be an addition to the existing
Despite the pandemic, the intent to purchase property is still there with one in three Malaysians likely to purchase property in 2021, according to our latest Consumer Sentiment Study 1H21.
MPMI
overhang units in Johor at 20.4 per cent, Selangor at 15.2 per cent and Kuala Lumpur at 10.1 per cent.
“Despite the pandemic, the intent to purchase property is still there with one in three Malaysians likely to purchase property in 2021, according to our latest Consumer Sentiment Study 1H21. These potential homebuyers are likely to be younger Malaysians who are keen to take advantage of the current market climate.
“Younger buyers are now keen to capitalise on the current low prices, conducive interest rates and current incentives – especially before the clock runs out on Home Ownership Campaign (HOC) enticements in May this year.
“Those looking to make a buy will be happy to note that the government has extended the stamp duty exemption on instruments of transfer and loan agreement for first-time home buyers, for properties up to RM500,000 per unit until December 31, 2025,” said PropertyGuru Malaysia country manager Sheldon Fernandez.
With the added opportunity of low interest rates, where Bank Negara Malaysia has decided to maintain the Overnight Policy Rate at 1.75 per cent, the current market may see an early spike in transactional activity in 2021.
“Overall, it is likely the property market will recover at a slower rate than the overall economy, as improved financial confidence must first occur to spur consumer demand,” Sheldon added.