Survey: 70 per cent think property prices will rise within six months
DISCONTENT: Cooling measures or not, now more than ever, more people are feeling that property prices are expensive and that the government needs to act on this
Despite the cooling measures imposed by Bank Negara, 72 per cent of 2,134 respondents in a survey still feel that property prices in Malaysia will increase in the next six months, compared to 62 per cent in Q4 2011. Sixty per cent of the respondents, compared to 55 per cent in Q4 2011, expressed a strong need for better government policies to ensure reasonable and affordable property prices in the country.
More people now at 65 per cent of total respondents feel that all property types in Malaysia are expensive, compared to 60 per cent in Q4 2011.
Conducted by one of Malaysia’s leading property portals, PropertyGuru, formerly known as HomeGuru, the Q1 2012 Property Sentiment survey probed property sentiment trends among a cross-section of the population from both West and East Malaysia. It was conducted between 28 March and 16 April 2012.
Several other highlights included the following: Forty-six per cent of respondents from Southern Malaysia perceive property across all sectors as affordable compared to 33 per cent from Northern Malaysia and just 25 per cent from the Klang Valley.
Apartments, condominiums and terrace houses are the most popular property types. More than half of the respondents feel that transactions and therefore prices for these three categories will increase up to 10 per cent.
Forty per cent of potential first time buyers have opted to rent rather than buy due to unaffordable property prices.
Twenty per cent state unreliable financing options as their reason for renting.
Thirty-three per cent of respondents in Q1 2012, compared to 35 per cent in Q4 2011 are willing to upgrade their existing properties in the next 12 months. Seventy per cent of potential upgraders earn above RM5,000 per month.
Thirteen per cent of respondents in the high income group are interested in overseas investment, compared to 18 per cent in Q4 2011.
Singapore, Australia, Indonesia, India, and China (Mainland China/Hong Kong/Macau) top the list of overseas destinations in which respondents currently own property.
Respondents have named Johor Bahru and George Town as prime real estate picks for future property hotspots, after the Klang Valley.
On a separate note, PropertyGuru has recently secured a double digit million Singapore dollar strategic investment from ImmobilienScout24, Europe’s top property portal group and a subsidiary of global company Deutsche Telekom.
This is one of the biggest online deals in Asia this year, and reinforces the rapidly emerging online media opportunity in Southeast Asia, according to PropertyGuru’s press release.