iProperty.com.my today says there is an Increase in home loan applications and positive demand for all property types.
The double-digit demand growth does not only represent an increase in property interest but homebuyers also took follow-through actions as many applied for home loans in H1 2021, expressing genuine purchasing interest.
Based on Bank Negara Malaysia’s (BNM) monthly loan application data, the value of home loan applications grew +86% year-on-year (YoY) from RM96.4 billion in H1 2020 to RM179.4 billion in H1 2021.
The value of loans approved has increased by +92.6% YoY in the same period too. With the Overnight Policy Rate (OPR) at a record low of 1.75%, many consumers are searching for property bargains in a low interest rate environment.
Interest in terrace houses remains the highest in Malaysia with a +29% YoY increase, this has allowed sellers to maintain their high asking prices at +1.6%.
The demand for condominiums, apartments and serviced residences is positive albeit lower, with a +5.2%, +11.7%, and +6.8% YoY increase, respectively.
However, the asking prices of high-rise homes in all major states have reduced due to a high number of unsold units and as a means for sellers to attract buyers.
Premendran Pathmanathan, General Manager for Customer Data Solutions & Quality, iProperty.com.my says Malaysians are still interested in purchasing homes either for their own stay or for investment purposes.
“However, positive figures aside, aspiring homeowners should plan before committing to long-term borrowing, as interest rates might not stay low for long.
“A return to pre-pandemic interest rates could result in higher monthly repayments in the future.”
