iProperty.com — Over half Malaysians upbeat about property market
WISH-LISTS: Respondents wish for more tax deductions on housings loans, lower interest rates and better housing schemes
iProperty.com Asia Property Market Sentiment Report 2012 for 2H revealed that Malaysians continue to remain upbeat about the property market, with 52 per cent of survey respondents revealing that the current political climate is conducive to property investment.
Speaking at the launch of the survey findings, Shaun Di Gregorio, Chief Executive Officer of the iProperty Group, said that the Malaysian real estate is in tandem with the continued growth in the economy and the growing young working population will continue to drive the domestic residential market.
“With the low barriers to property ownership and a healthy price growth in Malaysia, it was not surprising to see that a significant percentage (43 per cent) of those surveyed reported owning two or more properties, significantly higher than respondents in Singapore, Indonesia and Hong Kong,” said Di Gregorio.
A total of 11,966 people responded to the online survey on iproperty.com.
my held in the month of July 2012. The findings showed that landed property was the most popular type of property amongst respondents.
“The survey showed that 31 per cent of these respondents were looking to purchase property in the next six to 12 months with the main motivation to own their own property which was similar to respondents in the other three countries. Interestingly, the survey revealed that economic and political concerns were not high on the list of concerns for most survey participants, which reflects the general economic health of the Asian region,” Di Gregorio added.
Due to the loan-to-value ratio of 70 per cent, consumers are likely to maintain a cautious approach in purchasing high-end properties, with over 70 per cent stating that their budget for property investment was under RM500,000.
In view of the upcoming Budget 2013, respondents were asked what policies they thought the government should focus on and the top three policies chosen were: tax deductions on housings loans, lower interest rates and better housing schemes. Other policies of concern include imposing stricter guidelines on errant developers, providing better public transportation in housing areas and looking at enforcing guidelines on curbing property price increase.
“It was interesting to note that more than half of survey respondents (51 per cent) believed that more should be done to protect property buyers due to the many cases where errant developers have abandoned their projects,” said Di Gregorio.
He added 47 per cent of respondents were supportive of the recent ruling which requires developers to put aside 3 per cent of their gross development cost into the Housing Authority’s account before embarking on a project.
The Housing and Local Government Ministry made the amendments to the Housing Development (Control and Licensing) Act 1966 in which developers are now required to deposit 3 per cent of the estimated project cost, face a RM500,000 fine or/and a maximum three-year jail term for abandoned projects.
The most important issue of concern in the Malaysian property market was that of affordability and rising house prices. A significant number of respondents also expressed high concern about home financing policies and interest rates, as well as errant developers and building quality.