58% likely to buy a house in first half of 2017

Sheldon Fernandez

Some 58% of Malaysian buyers are more likely to buy a house within the first six months of the year, despite the property sector being sluggish, says a survey by PropertyGuru.com.my.

The Consumer Sentiment Survey conducted by Asia’s leading online property portal at end-2016 also revealed that 38% of consumers were satisfied overall with the local property market.

This is a 10% increase in overall satisfaction from the 28% recorded last year.

“This shows positivity as house buyers accept pricing realities and readjust strategies for 2017,” said PropertyGuru Malaysia country manager Sheldon Fernandez.

He said with new game changers such as the Mass Rapid Transit (MRT) lines and transit-oriented developments, property prices would remain stable or continue to appreciate, albeit at a moderate pace.

“Hence, consumers are now having more realistic expectations and are adjusting to conditions accordingly.

“Potential house owners are now looking to buy properties that are further away from the city, but with good transport infrastructure, or choosing smaller units in the city centre or other urban locations,” Sheldon said.

However, he added, consumers were still concerned about many factors, with 59% saying the overall house prices were still expensive.

Another 39% were concerned about the inability to secure loans and capital for downpayment.

The new PropertyGuru Affordability Sentiment Index showed a low score of 37 points, indicating that despite the market downturn, almost two-thirds of consumers expressed discontent with house prices despite the many discounts and offers from developers.

The issue of unaffordability is further exacerbated by rising living costs. Given the overall scenario, PropertyGuru said home ownership would continue to be a challenge for many Malaysians in 2017, especially those in the Generation Y – the generation born in the 1980s and 1990s – demographic bracket.

(Source: Property Guru)