PropertyGuru Study Finds That 51% Of Malaysians Cannot Afford To Buy A House
A recent study by PropertyGuru has found that an alarming percentile of Malaysians citizens cannot afford to purchase housing
Carried out biannually, this study, which is known as the Consumer Sentiment Study for H2 2022 (CSS H2 2022), found that potential homebuyers are facing affordability issues on their journey to purchasing property in Malaysia.
51% of respondents to the study reported that they are not qualified for government affordable housing schemes, and thereby are not able to purchase property without financial assistance.
The report noted that these issues may continue due to the ongoing global recession and inflation rates. Among these include an increase in the overnight policy rate (OPR), also known as the interest charged towards homeowners by depository institutions when taking a loan, by 25 basis points in July. The consumer price index (CPI) has also risen to an ultimate high of 4.4% year-on-year.
The study also found that 73% of the respondents understand the eligibility terms for affordable housing and they will be on the lookout for aids to assist them
Country Manager of PropertyGuru Malaysia, Sheldon Fernandez, noted that while their consumers have sound awareness of governmental initiatives and eligibility for affordable housing, ongoing issues such as recession, inflation, price hikes, and OPR increases, leave them to have to wait and see until the overall cost of living has stabilised.
"With the Budget 2023 announcement coming up soon, we are hopeful that there will be allocations that can help spur the property market and aid those [who] are planning to embark on their homeownership journey. The CSS H2 2022 has also indicated that more than 69% of those surveyed plan to buy a house if the Home Ownership Campaign is revived," noted Fernandez in a statement within the study.
Environment changes have also shifted the way home owners view property locations, with more showing a new awareness for climate change than ever before
Following the news of flash floods and landslides that have affected multiple areas around the nation within the past year, property owners have shown a great concern towards the impact on these natural occurrences for the long run on a prospective property.
It was revealed that 83% of respondents in the study highlighted landslides were a primary consideration, while a staggering 92% viewed flooding as the main concern when purchasing property.
Closing out the conversation, Fernandez noted that a whopping 66% of the respondents are willing to pay a higher insurance premium on their property for climate change effects. This has also caused many Malaysians to consider sustainable homes and features as key considerations when scouting for a property.
"The higher awareness of eco-friendly facilities and features is likely linked to ongoing climate change issues as well. Consumers are now more conscious of current issues and are now making eco-friendly decisions in hopes of making a change," stated Fernandez.
Click here to read the full study by PropertyGuru