Despite A Decline in Demand, Real Estate Prices Are Rising
The report shows that tenants continue to prioritize locations closer to the city with competitive prices when looking for shorter-term accommodations.
According to PropertyGuru Malaysia's Property Market Report (MPMR) Q1 2023, property prices in Malaysia have continued to rise, even as demand from buyers has fallen.
This has created a widening gap between buyers and sellers, with the Sale Price Index on PropertyGuru listings increasing by 1.5% QoQ, while the Sale Demand Index has dropped by 14.8% QoQ. Rising inflation and higher borrowing costs have tightened potential buyers' budgets, making it harder for them to afford the current property prices in the market.
The report shows that potential homebuyers are gravitating towards the rental market, with rental demand seeing a slight drop of 4.0% QoQ in Q4 2022, likely due to the higher rental prices in the market.
The report highlights various factors contributing to the rising property prices, including the overnight policy rate rising to 2.75% in 2022 and homeowners increasing housing prices to counter the higher overall cost of homeownership.
Kazi Mahmood
Johor Real Estate
Despite this, the Malaysian economy expanded by 8.7% YoY in 2022, the highest annual growth recorded after 2000, with a downward trend in the unemployment rate. These positive shifts in the local economy have also eased the pressure on property players to sell, with most holding an optimistic view of the market in lieu of the appointment of the new government.
Johor has received the most interest among property sales listings, likely boosted by competitive prices. The Astaka @ 1 Bukit Senyum topped the condominium category with 8,784 views on the PropertyGuru website, while Leisure Farm took the top spot for landed properties, likely due to their advantageous locations with competitive property prices.
The report shows that tenants continue to prioritize locations closer to the city with competitive prices when looking for shorter-term accommodations.
In conclusion, the Property Market Report shows that property prices in Malaysia have continued to rise despite lower demand from buyers, creating a widening gap between buyers and sellers.
The report highlights various factors contributing to the rising property prices, while also showcasing areas that have received the most interest due to their advantageous locations with competitive property prices.
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