Malaysia business: PropertyGuru has emphasized an increase in the sentiment index from 39 points (H2 2020) to 42 points (H1 2021). It was due to the current positive outlook on property climate, real estate satisfaction, positive government efforts, optimal interest rate, and favourable price outlook.
Malaysians are being realistic and cautious about property purchasing. In fact, 42% of Malaysians are adopting a wait-and-see approach in foreseeing for better property value in the future.
Sheldon Fernandez, country manager of PropertyGuru Malaysia said that people are expecting the housing prices to decrease further. This is because developers need to adjust their pricing strategy to launch economical houses. Based on Kenange Research, more than 50% of the new launches in Q3 2020 were under RM300, 000.
Moreover, property owners have no choice but to decrease the asking price as they are desperate to sell their properties. Hence, the price tendencies of the properties in the secondary market will be linear.
According to a survey done, 35% of young adults are interested in purchasing a property thanks to the market being in a favourable environment. The interest is further driven by low-interest rates, incentives from the Home Ownership Campaign (HOC), and ideal prices from developers.
52% of respondents said the homeownership challenges include the hardship in committing to the down payment for the property purchase. It is still the main barrier to apply for a home loan.
Besides, the barriers in applying for a home loan also include job instability (46%), unfamiliarity with paperwork (33%), unfavourable credit history (27%).
Prediction of PropertyGuru Malaysia
PropertyGuru Malaysia has also predicted Malaysia’s economy is in recovery progress that has a positive impact on the property sector in H2 2021. This is due to the high volume of vaccination roll-out.
As Bank Negara Malaysia sees improvement in global economy, it decided to maintain the overnight policy rate (OPR) at 1.75%. However, downside risks remain among uncertainties surrounding the COVID-19 pandemic.
Sheldon concluded that increased sales will likely occur in the property market in the first half of 2021 as the Home Ownership Campaign (HOC) ends on May 31.
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