PropertyGuru Malaysia released its biannual Consumer Sentiment Study (CSS) for H1 2023, which revealed that nearly half of the Malaysian respondents surveyed have a budget of less than RM350,000 for buying properties, while only 1 in 10 have a budget of over RM600,000.
As the disparity between income and house prices continue to widen in Malaysia, affordability issues among consumers is likely to be an ongoing trend. This is apparent in the CSS H1 2023, as more Malaysians await government initiatives that can help attain their homeownership goals. The study found that half of the Malaysian consumers consider themselves unable to buy a house without government assistance, with nearly 3 in 4 respondents calling for more government support to address the rising inflation.
Sheldon Fernandez, Country Manager, Malaysia (PropertyGuru.com.my and iProperty.com.my) shared, “The continued financial challenges that consumers face as seen in PropertyGuru’s CSS H1 2023 only further highlights the importance of government financial assistance for Malaysians’ journeys toward homeownership. Although the recent increase in minimum wage was a welcome relief, the rising inflation also brought higher daily household expenses, leaving Malaysians with lesser monthly savings and a need to minimise additional expenditures.”
Among calls for government-led financial support, the study revealed that 2 in 5 Malaysians continue to not have a clear understanding of the eligibility terms for affordable housing. The CSS H1 2023 revealed that this is more prevalent among low-income earners and those within the age range of 20 to 29.
On the other hand, the study also found that over half (58%) of Malaysian consumers with the intention to purchase a property have achieved the halfway point of their savings target, driven mostly by millennials between the ages of 22 to 41 and mid-income earners.
“What we are seeing in the market lately is that potential homebuyers do have the intention to buy, though that intention is hampered by affordability issues that are expected to linger until the overall cost of living has stabilised. With this, we expect consumers to continue prioritising renting over purchasing property in the upcoming year,” continued Sheldon.
Climate Change Continues To Impact 98% Of Consumers’ Property Decisions
Following the Batang Kali landslide tragedy in December last year, climate change continues to be a significant concern for 98% of Malaysian respondents – a concern that was especially reflected among respondents ages 50 years and above, according to the latest CSS H1 2023 report.
Meanwhile, the CSS H1 2023 saw that approximately 52% of consumers are willing to pay a higher insurance premium for protection against climate change effects on their property. Considering the recent surge in weather-related disasters, 70% of Malaysians expressed dissatisfaction with national efforts to mitigate the effects of climate change in the country.
“With the recent tragedy of floods across the country that has affected families nationwide, Malaysians are especially concerned about the topic of natural disasters,” added Sheldon. “Measures to reflect the changing needs of consumers due to external factors from climate change and the ongoing economic recession need to be taken to enable consumers to achieve their homeownership goals.
“One such initiative that we support is the continued stamp duty exemption, as announced under Budget 2023, which aims to assist first-time homebuyers to get onto the property ladder. We believe that this, along with the Government’s Syarikat Jaminan Kredit Perumahan (SJKP) home loan scheme to assist borrowers with unstable incomes, will provide crucial support for Malaysians struggling to maintain a good quality of life. This is particularly so for young Malaysians who are just beginning their property journeys, and we look forward to being part of the journey in achieving their homeownership dreams,” concluded Sheldon.
