NEW STRAITS TIMES. 3RD MARCH: The asking prices of properties for sale in Malaysia will continue to rise as existing homeowners raise their selling prices.
However, the concern is that there is lower demand from buyers, creating a widening gap between them and sellers.
The PropertyGuru Malaysia’s Property Market Report Q1 2023 captured upward trends in the Sale Price Index, with asking prices on PropertyGuru listings increasing by 1.5 per cent quarter on quarter in the fourth quarter of 2022 (Q4 2022).
The asking prices of properties for sale in Malaysia will continue to rise as existing homeowners raise their selling prices.
However, the concern is that there is lower demand from buyers, creating a widening gap between them and sellers.
The PropertyGuru Malaysia’s Property Market Report Q1 2023 captured upward trends in the Sale Price Index, with asking prices on PropertyGuru listings increasing by 1.5 per cent quarter on quarter in the fourth quarter of 2022 (Q4 2022).
“This is likely due to the projects’ advantageous locations, which are strategically located with competitive property prices,” he said.
In the central region, Cheras and Bandar Tasik Selatan registered the highest increase in interest.
Fernandez said that potential buyers have also set their sights toward the outer areas of Klang Valley due to larger and more affordable housing options with access to the Light Rail Transit or expressways.
He said this is consistent with the findings of PropertyGuru Malaysia’s Consumer Sentiment Study for H1 2022, where the increase in a remote working arrangements in industries contributed to the preference for property outside the city.
“As the Malaysian economy is expected to expand by four to five per cent in 2023, the property market is likely to remain active with positive growth,” Fernandez said.
The Malaysian economy expanded by 8.7 per cent year on year in 2022, the highest annual growth recorded after 2000 (8.9 per cent year on year), according to the Ministry of Finance.
The growth is paired with a downward unemployment rate trend, declining to 3.6 per cent in Q3 2022 from 4.2 per cent in Q1 2022.
Fernandez said these positive shifts in the local economy eases 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.
Rental properties on an uptrend
Potential purchasers turned away from the housing market as a result of escalating property values and moved towards the rental market as seen by the Rental Demand Index reaching 32.9 per cent in 2022.
Fernandez said that the supply of rental listings on the PropertyGuru website also increased by 19.6 per cent, as landlords were jumping back into a rental market with positive demand, seeking alternative income sources to offset inflation.
However, the Property Market Report registered ease in rental demand by four per cent quarter on quarter in Q4 2022, after consecutive increases in the previous quarters.
He believes that the slight downturn in rental appetite may be due to the higher rental prices in the market, edging up to 2.8 per cent quarter on quarter at the end of last year.
“Despite this, the rental market is expected to remain active as the government recently waived industry quotas to speed up the hiring of foreign workers, who will bring in fresh demand for rental properties in industrial areas of Malaysia,” he said.