Alarming Property Affordability Crisis In Malaysia in 2023
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 - Sheldon Fernandez
According to the biannual Consumer Sentiment Study by PropertyGuru Malaysia for H1 2023, almost half of the Malaysian respondents surveyed have a budget of less than RM350,000 for buying properties, while only one in ten have a budget of over RM600,000.
The study showed that 51% of Malaysian consumers consider themselves unable to buy a house without government assistance, with three in four respondents calling for more government support to address the rising inflation.
Among calls for government-led financial support, the study revealed that 40% of Malaysians do not have a clear understanding of the eligibility terms for affordable housing.
Asir Fatagar
Meanwhile, climate change continues to be a significant concern for 98% of Malaysian respondents, following recent tragedies such as the Batang Kali landslide and floods, and approximately 52% of consumers are willing to pay a higher insurance premium for protection against climate change effects on their property.
Sheldon Fernandez, Country Manager, Malaysia (PropertyGuru.com.my and iProperty.com.my) says, “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.”
“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.”
News Admin
