Malaysia Property Market Report (MPMR) Q2 2022, which has been released by PropertyGuru, captured a 1.10% QoQ and 3.64% YoY increase in the Landed Property Sale Price Index. This comes with a 1.96% QoQ dip in the Landed Property Sale Demand Index, registering a 5.21% increase YoY.
This trend clearly indicates that landed homes continue to be the preferred buying option, though potential homebuyers are dampened by affordability issues and financial difficulties, thus resulting in slower demand.
“While we slowly see improvements in the market, consumer sentiments are still being affected by lingering post-COVID-19 effects. With the attention on rising inflation, potential homebuyers are cautious, seeking restabilisation and improved job security on the back of the current economic climate. With the lack of financial incentives to take advantage of, buyers may be hesitant to move forward with their purchasing plans until the economy restabilises,” Shylendra Nathan, Country Manager of Malaysia (PropertyGuru.com.my and iProperty.com.my) commented.
“Consumer sentiment in the market will likely only improve with the nation’s economic recovery journey, which we hope to see as the year progresses. Meanwhile, we see potential for property demand to turnaround in the coming quarters, as Malaysians with the means will be looking at property as a hedge against inflation. With the advantage of land value to factor in, the rising prices of landed properties offer larger margins for capital appreciation in the long term,” he added.
According to Bank Negara Malaysia’s (BNM) Financial Stability Review H2 2021, there have been visible improvements in the overall economy and financial sector. However, the high number of unsold properties remains a key issue for the housing industry. The report stated that over 180,000 units in the housing market remain unsold, reflecting pre-existing affordability issues that were worsened by the pandemic.
This is consistent with the MPMR’s Supply Index, which continued its upward trend, gaining 0.31% QoQ and 19.10% YoY in Q1 2022 based on the overall volume of listed properties.
