Sheldon Fernandez, country manager of PropertyGuru Malaysia, says: “Malaysia has undergone various forms of lockdowns in the last 17 months, and this extended time at home has made them realise the importance and benefits of having a space of their own, especially in the age of remote working. The pandemic’s effect on home life is more prominent among young Malaysians, low-income earners, and those currently living with their parents, who cited ‘needing more personal space’ as one of the top reasons of wanting to purchase a new home.”

Among Malaysians surveyed, regardless of demographic and current living situation, the need for more personal space (26 per cent) is ranked as the third reason for wanting to purchase a property, while the top two reasons are investment (43 per cent) and to take advantage of the low interest rates now (27 per cent).

Property Market Presents Both Opportunities and Hardships

The favourable interest rates and price outlook, as well as the high current real estate satisfaction have increased the study’s overall Sentiment Index increased by three points from 42 in H1 2021 to 45 in H2 2021. On the other hand, Malaysians’ sentiment on the current real estate climate has declined by three points from 35 in H1 2021 to 32 in H2 2021.

Those who are satisfied with the current real estate climate in Malaysia mentioned that good long-term prospects for capital appreciation as the top reason for them feeling this way. Meanwhile, those who are dissatisfied cited inability to find a property within their budget as their top reason.

“It is clear that the Covid-19 pandemic has created both opportunities and hardships for many Malaysians who are looking to purchase a home. Nonetheless, the desire to own a home remains strong among Malaysians as four in five people intend to buy a property in Malaysia in the future,” says Fernandez.

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While many Malaysians would like to own a home, 67 per cent have chosen to defer their property buying decision from one to five years due to as they continue to face challenges in their home ownership journey during this uncertain times.

The study found that compared to H1 2021, more Malaysians are now uncertain about property prices (56 per cent, up from 52 per cent), experiencing delays in property transactions (51 per cent, up from 42 per cent), and facing difficulties in securing home loans (46 per cent, up from 43 per cent) in H2 2021. Malaysian home seekers also cited inability to afford downpayment and unstable job situations as their top two barriers to taking a home loan in H2 2021.

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Those who are satisfied with the current real estate climate in Malaysia mentioned good long-term prospects for capital appreciation as the top reason for them feeling this way. Meanwhile, those who are dissatisfied cited inability to find a property within their budget as their top reason.

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Desire for More Measures from Government and Property Players

Despite the various property relief measures introduced by the government such as the extension of the Home Ownership Campaign (HOC) to end 2021, only 16 per cent of Malaysians perceive governmental efforts to make housing affordable as sufficient.

The majority believe that the government can do more to help the property sector, with the top three measures they expect from the government being further reduction of interest on home loans (70 per cent), extension of the HOC to subsale properties (58 per cent), and reduction of Real Property Gains Tax (55 per cent).

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Meanwhile, Malaysians also believe financial incentives from property developers such as discounts or cashback (84 per cent), purchasing packages and schemes (66 per cent), and vouchers or gifts (38 per cent) can help encourage future home purchase decisions.

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