NEW STRAITS TIMES. 8TH OCTOBER: PropertyGuru Malaysia is proposing several measures to boost the property sector, including ensuring quality in the country’s affordable housing projects.
Sheldon Fernandez, Malaysia’s country manager (PropertyGuru.com.my and iProperty.com.my), welcomed the government’s move to build affordable homes, which he sees as an important step towards stabilising the property market.
With the overnight policy rate (OPR) remaining at 3.00 per cent and inflation easing, he believes an increase in demand is on the horizon.
To further stimulate demand, he said that housing programmes must be tailored to potential buyers’ diverse preferences and needs.
He described the Madani Inclusive Housing pilot project, which aims to build 800 affordable homes in major cities for people of various income brackets, as a welcome initiative that will benefit the rakyat while meeting the housing needs of various target groups.
As Malaysia enters a critical period in its economic recovery, he believes it is critical that the government look beyond property prices and implement targeted measures to alleviate the cost-of-living challenges faced by ordinary Malaysians.
The PropertyGuru Malaysia Property Market Report for the third quarter of 2023 (Q3 2023) highlighted resistance from potential homebuyers towards rising property prices, causing a 10.2 per cent quarter-on-quarter dip in property inquiries in Q2 2023.
A total of 38 per cent of respondents voiced the need for more attractive home choices within the affordable housing segment.
“Consumer decisions are influenced by more than just pricing and unit specifications, they encompass location and livability. In fact, property inquiries have been on the decline since Q2 2022. This tells us that aspiring homebuyers are being priced out of the market. In other words, the current homes on sale do not match their budget,” he said.
Fernandez said property affordability remains top of mind for Malaysians, with 87 per cent of respondents from the PropertyGuru Malaysia Consumer Sentiment Study (CSS) H2 2023 identifying property prices as the biggest barrier to their buying ambitions.
“Amid this, stagnant wages and rising living expenses remain significant bottlenecks to homeownership. This underscores the importance of a balanced property market where prices align with income growth and costs of living.
“In light of the abovementioned trends, it is critical that the government strategically tackles not only property prices but the broader challenges related to the cost of living and stagnant consumer incomes,” he said.
Fernandez hopes that the government will consider implementing homeownership initiatives that provide financial assistance to homebuyers, similar to the successful Home Ownership Campaign as well as measures to spur income growth in order to make homeownership more accessible to a wider demographic.
According to CSS H2 2023, 45 per cent of respondents are having difficulty obtaining financing for affordable housing schemes.