Malaysia: Property market hit by inflation, economic uncertainty: Report
PETALING JAYA: Homebuyers are being bogged down by affordability, the inability to secure loans, job security, and overall economic instability when it comes to purchasing a home, The Malaysian Insight reports.
The Malaysian Institute of Estate Agents (MIEA) president, Chan Ai Cheng, said these factors are plaguing the market.
As for rental prices, they have remained stable while the purchases of new properties have gone up.
“Since there are so many discounts available for first-time homeowners, they would rather buy new properties rather than (buy a) subsale (property) so they can avoid spending on a down payment,” Chan told The Malaysian Insight.
She said that the trend also shows that purchasing power has declined, leading to more people renting instead of buying.
Chan said real estate agents have noticed landlords are unwilling to renovate their houses or offer tenants their old furniture.
The cost of repairs to the home is borne by the owners, therefore reducing rental prices, she said.
Data from PropertyGuru showed that the Rental Price Index saw an increase of 1.22% in the first quarter (Q1) of this year.