IQI member of Juwai IQI,in its inaugural Residential Sales Market Report for Malaysia’s first quarter of 2024 which is derived from analysing over 70,000 residential sales spanning both subsale and new project markets since 2018, sheds light on key trends in residential property sales, with a particular focus on sales prices and housing affordability.
The findings revealed that the average subsale sales price across Malaysia for the first quarter of the year stood at RM521,614, with new units commanding an average price of RM582,887.
These figures reflect a slight increase compared to NAPIC’s 2023 house price of RM467,144, attributed to variations in the property mix and timeframe analysed.
Unsurprisingly, Kuala Lumpur emerges as the most expensive property market in the country, with an average subsale home price of RM801,557, while new homes are relatively more affordable at RM708,462 on average. Following Kuala Lumpur, states such as Sarawak, Sabah, and Johor also feature among the topmost expensive states for subsale homes, while Johor, Sabah, and Kedah trail Kuala Lumpur in terms of new home prices.
However, the report also highlights the affordability of housing for most buyers, with a significant portion of transactions occurring in lower price ranges. A majority of new unit buyers (over half) purchased homes priced at RM500,000 or below, while nearly half of subsale home buyers also fell within this price bracket.
Moreover, the report delves into the monthly expense of owning a home, offering insights into mortgage payments compared to rental costs. For instance, a buyer investing RM30,000 as a down payment on a RM300,000 home would face a monthly mortgage expense of RM1,228, significantly lower than the average rental cost of RM1,975. This data underscores the financial benefits of homeownership compared to renting, providing valuable insights for prospective buyers.
