8 March 2021
PropertyGuru’s Malaysia
Property Market Index Q1 2021 (MPMI) report has registered
steady asking prices at 88.60 index points in Q3 and Q4 of 2020.
Although
the index has remained unchanged, asking prices for properties in Malaysia have
seen a drop quarter-on-quarter (QoQ) with Kuala Lumpur, Johor and Penang
registering a drop of 1.80%, 0.83% and 0.78% respectively. Selangor is the only
market with a slight increase of 0.84%.
With
subdued asking prices coupled with favourable government incentives, this has
resulted in more affordable options for purchasing property, states
PropertyGuru, Malaysia’s No. 1 property website.
The
National Property Information Centre (NAPIC) also revealed that 50.5% of the
new residential launches are properties priced below RM300,000, while those
priced between RM300,001 to RM500,000 account for 24.7%.
Landed
properties dominated the new residential launches with 3,127 units launched in
the quarter in review. This would be an addition to the existing overhang units
in Johor at 20.4%, Selangor at 15.2% and KL at 10.1%.
“Despite
the pandemic, the intent to purchase property is still there with 1 in 3
Malaysians likely to purchase property in 2021, according to our latest Consumer
Sentiment Study H1 2021. These potential homebuyers are likely to be
younger Malaysians who are keen to take advantage of the current market
climate.
“Younger
buyers are now keen to capitalise on the current low prices, conducive interest
rates and current incentives – especially before the clock runs out on Home
Ownership Campaign (HOC) enticements in May this year.
“Those
looking to make a buy will be happy to note that the government has extended
the stamp duty exemption on instruments of transfer and loan agreement for
first-time home buyers, for properties up to RM500,000 per unit until Dec 31,
2025,” said Sheldon Fernandez, Country Manager of PropertyGuru Malaysia
With
the added opportunity of low interest rates, where Bank Negara Malaysia has
decided to maintain the Overnight Policy Rate at 1.75%,
the current market may see an early spike in transactional activity in 2021.
Recovering
Regions and Bright Spots
Selected
bright spots within key regions are bucking the downward trend by registering
positive gains due to increased demand. In Kuala Lumpur, prices in the Ampang
Hilir district are moving against the grain with a 10.96% gain, bringing the
median asking price to RM975.82psf.
Neighbouring
Selangor saw upward trends in Damansara Uptown at 4.35% increase with a median
price of RM958.85 psf, Sungai Buloh (Sierra Mas) with a 5.56% increase to
RM633.33 psf and Petaling Jaya (Tropicana Indah) with a 14.28% increase at
RM636.36 psf.
Up
north in Penang, within Georgetown, prices rose in Jalan Scotland at 12.23%
chalking a median of RM728.27 psf whilst Gurney Drive registered a 4.4%
increase to RM785.71 psf.
Despite
being the state with the biggest decline in asking prices, bright spots in
Johor were recorded for Johor Bahru (Bandar Dato Onn) with a 3.31% increase at
RM389.61 psf and Kulai (Senai) with a 7.93% increase at RM306.67 psf.
“These
bright spots are registering positive gains with younger professionals previously
priced out of the market and upgraders who have found good bargains in this
climate to make lifestyle enhancements and upgrades.
“Overall,
it is likely the property market will recover at a slow
er rate than the overall
economy, as improved financial confidence must first occur to spur consumer
demand,” Sheldon added.