Affordability, other issues continue to loom over potential home buyers

1 of
Previous Next

Ad Details

  • Ad ID: 16351

  • Added:

  • Views: 29

Description


51% of survey respondents say they do not qualify for government affordable-housing schemes and cannot buy property without financial help.

KUALA LUMPUR: Issues of affordability continue to loom over potential home buyers, with 51% of survey respondents indicating they do not qualify for government affordable-housing schemes, and are unable to purchase property without financial help.

The findings were revealed by PropertyGuru Malaysia in its biannual Consumer Sentiment Study for the second half of the year (H2 2022), polling 801 respondents on property and related issues via an online questionnaire.

With the overnight policy rate having increased by 25 basis points in July, as well as the consumer price index rising to an ultimate high of 4.4% on-year, potential home buyers are likely to keep facing such challenges amid the ongoing global recession and higher inflation rates.

In the study, 73% of respondents indicated they had a clear understanding of their eligibility for affordable housing, suggesting they would adopt a wait-and-see approach and continue to look out for other government housing initiatives.

“With the Budget 2023 announcement coming up soon, we hope there will be allocations that can help spur the property market and aid those who are planning to embark on their homeownership journey,” Sheldon Fernandez of Property Guru said.

He added that more than 69% of those surveyed plan to buy a house if the Home Ownership Campaign is revived.

Emerging tech and the environment

The previous study in H1 2022 showed two out of three Malaysians would be comfortable with shortlisting and viewing properties virtually, while one in four would be comfortable signing agreements online.

92% and 83% of respondents are concerned about floods and landslides, respectively, affecting their property.

This signals consumers have become more tech-savvy following the reliance on digital activity during the pandemic, and that the way consumers digest information and carry out transactions is evolving.

This trend continues in H2 2022, as over half of respondents said emerging technologies such as artificial intelligence, property aggregation platforms, and digital housing societies would prove useful, indicating that tech will continue to play a major role in the property market.

The study also showed that home buyers are concerned with how natural disasters will impact properties in the long run. Some 92% of respondents highlighted flooding as their main concern, while 83% were concerned about landslides.

With environmental consciousness recording an upward trend, consumers are looking at sustainable homes and features as key considerations when purchasing property.

Respondents noted that solar panels, rainwater harvesting, and food-waste composting are important features to have in the future; while one in three in the higher-income group said they would pay more for a property with electric vehicle-charging ports.

With many losing and damaging their homes in the past year, it is evident natural disasters have made a lasting impact: 66% of respondents said they would pay a higher insurance premium on their property to safeguard against climate-change effects.