KUALA LUMPUR: Future home buyers are facing issues buying a home, according to the PropertyGuru Malaysia Consumer Sentiment Study H2 2022, which found that 51 per cent don't qualify for affordable housing schemes and cannot afford to buy a home without government assistance.
With the overnight policy rate (OPR) increasing by 25 basis points in July and the Consumer Price Index rising to an all-time high of 4.4 per cent year on year, future home buyers may continue to face affordability issues due to the global recession and inflation.
This was seen in the PropertyGuru Malaysia survey where half of the respondents said that they were not eligible for affordable housing schemes, and at the same time, could not afford to buy a property without aid.
In the biannual study, 73 per cent of the participants understood the requirements for affordable housing, indicating that potential homebuyers would continue to look out for other government housing initiatives.
PropertyGuru Malaysia country manager Sheldon Fernandez today said as seen in the survey, consumers were aware of government initiatives and qualifications for affordable housing.
"As a result of the recession, inflation, price hike and the continued OPR rise, we expect prospective homebuyers to continue to take a wait-and-see approach until the cost of living stabilises.
"We hope that the 2023 Budget will have allocations to boost the property market and help those who want to own a house.
"The PropertyGuru Malaysia Consumer Sentiment Study shows that more than 69 per cent of respondents plan to buy a house if the Home Ownership Campaign is revived."
Meanwhile, the study revealed that homebuyers were concerned about flash floods and landslides that hit several areas last year.
Fernandez said 92 per cent of respondents highlighted floods as their main concern while 83 per cent were worried about landslides.
"With rising environmental awareness, consumers are looking for homes and sustainable features when buying a home."
Respondents said solar panels, rainwater harvesting system and food waste composting were important features to have in the future, he added.
He said one in three respondents from the high-income group were willing to pay more for a property with an electric vehicle charging port.
"Although location is one of the main aspects for home seekers in Malaysia, more people are prioritising these features following the floods last year.
"Higher awareness of eco-friendly amenities and features may also be linked to climate change issues.
"Consumers are making eco-friendly decisions in the hopes of making a difference."
He added that two in three respondents were willing to pay a higher insurance premium to protect their home from climate change effects.
"Many lost their homes in last year's natural disasters.
"Sixty-six per cent of the respondents were willing to pay a higher insurance premium to protect their home from climate change effects, because no one can predict whether their homes will be hit by floods or other disasters."
The study polled 801 people on property and property-related issues via an online questionnaire from June 16 to 30.