The outlook is positive for the Malaysian property market next year, according to a new report.
A survey by the iProperty Group, Asia’s No.1 network of property portals, quizzed professionals and non-professionals about the state of the country’s real estate market. While rising property prices have spurred higher demand for affordable housing, the mood is upbeat for the future.
Perbadanan PR1MA Malaysia (PR1MA) has to-date approved 153,000 units of affordable houses to be built in 110 locations nationwide, with another 250,000 units to be approved by the end of 2015. Demand, though, significantly exceeds suppyl, with over 1 million applications already submitted to PR1MA.
“Though various affordable housing schemes have been introduced by the government over the years, it’s not enough to meet the demand. This is why, respondents are calling for more affordable housing schemes to be introduced,” explains iProperty Group’s Managing Director and CEO Georg Chmiel.
Although the country’s relatively young population and labour force between the ages of 21 to 30 years old are prevented from getting on to the property ladder by high property prices, the love affair for Malaysian property “remains strong”, adds Chmiel, “increasingly from overseas”.
Indeed, the weaker Ringgit has made properties in Malaysia even more attractive for overseas buyers. The survey findings showed that compared to six months ago, there is an increase in the number of Singaporeans looking to purchase property in less than 6 months to 12 months.
The top three reasons for international buyers to purchase were that they viewed the property as a good investment, expected to migrate or retire in the country, or that the economic slowdown had brought prices down.
The typical budget for a foriegn buyer has also increased from less than SGD500,000 to SGD$1 million to SGD $1.5 million.