Buyers keen on buying properties in 2019

Posted on 03 Jan 2019
Share this article   

Survey respondents consider pricing first and security second as top deciding factors

2019_01_cover_01

By Tharmini Kenas tharmini@thestar.com.my

GOOD news for developers and the property market: the majority of the 3,000 respondents in the latest StarProperty.my Buyers’ Sentiment Survey are keen to make a purchase in 2019. At the same time, they show a reluctance to rent properties for the long term.

On the question of buying property in the next 12 months, 42% of the respondents answered yes. While 34% are not thinking of buying now, 24% are undecided -- making them potential buyers.

These numbers represent an about turn from last year’s survey results where respondents were uncertain and confused about their property decisions. The certainty shown in this year’s survey reflects the optimism in the market. Another point of interest to developers is the response to the question: Would you prefer to buy or rent?

A whopping 84% chose buying over renting, indicating the reluctance of Malaysians to rent properties for long periods.

Chart_1

 

Chart_2

Factors that influence buying

The findings of the survey also reveal that the price of property (with a weighted average of 3.85) tops the list of factors that influence buyers, followed closely by safety and security (3.82) with location (3.80) in third spot.

Interestingly, two of the three top factors have shuffled positions compared to last year. In 2018, price remained the No.1 factor but respondents chose location over safety and security.
Other factors that markedly influence buyers’ decisions are developer reputation, connectivity and accessibility, potential rental yield, potential capital appreciation and distance from hazardous elements such as overhead power lines, busy roads, and sewage treatment ponds.

Chart_4

Options on property types

Respondents show a high preference (87%) for newly-launched houses over sub-sale properties (28%). Of late, developers have been launching projects that come with attractive packages such as low down-payment, absorbed lawyer fees, and built-in furniture and fittings – which contribute to the appeal for new properties.

On the other hand, auction properties did not fare well with respondents. Recording a mere 16% interest shows that the stigma associated with auction properties is still clouding opinions and judgments of buyers.

Chart_3

Of the different types of property available, respondents highly favoured terraced/ link houses (52%) compared to condominium/ serviced apartments (44%), apartment/flat (25%), semi-detached house (23%), bungalow/villa (10%), and shophouse (7%).

Chart_5

As for affordability, properties in the range of RM300,000 to RM500,000 are most favoured by the majority of respondents.

The next range is RM500,001 to RM700,000 and only 5% of respondents are looking for properties costing more than RM900,000. Affordable housing projects by private developers are often in the RM300,000 - RM500,000 range which falls within the budget of the majority of respondents for 2019.

The most popular location among buyers is Johor Baru (50%), followed by Kuala Lumpur (19%), Puchong (18%) and Petaling Jaya (17%). Shah Alam, Cheras and Kajang are also among
the preferred locations.

An aspect that often gets sidetracked when it comes to preference is property size. To cater to affordability, the size of new developments is often significantly reduced. In the 2019 Buyers’ Sentiment Survey, most of the respondents chose 1,000sf-1,499sf as the ideal property size for a quality daily life.

Chart_6

Johor is the most popular

Investors who made up 31% of the total respondents showed an interest in residential properties (80%) in 2019, followed by commercial properties (33%) and industrial properties (7%).

Chart_7

The investment location that tops the list is Johor Baru (48%), beating Kuala Lumpur (31%) with Puchong and Petaling Jaya recording 18%. Other favourite investment locations include Cheras, Penang Island and Shah Alam.

Chart_8

Interesting facts from the survey

  1. 44% of respondents feel that the interest rates for housing loans are quite high.
  2. The acceptable distance from home to the workplace is less than 15km.
  3. 53% of respondents believe that Malaysian land should be for locals only.
  4. 43% of respondents support multigenerational loans, 40% are against while 17% are undecided.
  5. 64% of respondents strongly believe that there is an oversupply in the local property market.
  6. 67% of respondents will not buy a property they think is haunted. However, 16% would go for it while 17% are undecided

Chart_13

Chart_14

Chart_12

 

 

 

 

 

 

 

 

People’s wish list for 2019 property market

2019_01_pic1

1. Competitive and affordable price for new properties
2. Control the price of sub-sale properties
3. Lower housing loan interest
4. High yield/return of investment
5. Flexible financing options
6. No RPGT
7. Zero down-payment
8. Properties near to public transportation
9. Properties with an improved and attractive layout
10. Pet-friendly condominiums/apartments
11. Reduction in loan approval time
12. Easy access to the main road
13. Disabled-friendly developments
14. Elderly-friendly condominiums/apartments
15. More green plants in housing areas
16. Control/regulate properties sold for investment purpose
17. Halt new developments until the number of unsold properties is reduced significantly
18. More township developments
19. Environmental-friendly housing projects
20. Give importance to security
21. Provide correct information about developments
22. Auction properties should be in good condition
23. High quality and attractive lifestyle facilities
24. Better government incentives and housing policies for the middle class
25. Parking charges to be monitored because some operators are unscrupulous
26. More affordable residential properties catering to the middle class (instead of just two extremes: luxury-low cost)

To get the full report of Buyers' Sentiment Survey 2019, fill in the form here

Want to contribute articles to StarProperty.my? Email: editor@starproperty.my
Was this article helpful?
Related News

Fresh from the news oven

Friday, 21 Feb 2020 17:02 PM

REHDA to host seminar on Strata Development & Dispute Resolutions

News & Articles
Latest News

Stories and news that might pique your interest

Monday, 24 Feb 2020 16:02 PM

Making your house eco-friendly

Home & Living
Monday, 24 Feb 2020 13:02 PM

When apartment managements say no to pets

News & Articles
Monday, 24 Feb 2020 10:02 AM

Gamuda adopts Yardi Elevate for leasing and deal management

News & Articles
Friday, 21 Feb 2020 17:02 PM

REHDA to host seminar on Strata Development & Dispute Resolutions

News & Articles
Thursday, 20 Feb 2020 17:02 PM

Mah Sing launches “Eazy to Own,” campaign

News & Articles
Thursday, 20 Feb 2020 15:02 PM

E&O to launch properties worth RM1.3bil in GDV

News & Articles
Monday, 24 Feb 2020 13:02 PM

When apartment managements say no to pets

News & Articles
Monday, 24 Feb 2020 10:02 AM

Gamuda adopts Yardi Elevate for leasing and deal management

News & Articles
Friday, 21 Feb 2020 17:02 PM

REHDA to host seminar on Strata Development & Dispute Resolutions

News & Articles
Thursday, 20 Feb 2020 17:02 PM

Mah Sing launches “Eazy to Own,” campaign

News & Articles
Thursday, 20 Feb 2020 15:02 PM

E&O to launch properties worth RM1.3bil in GDV

News & Articles
Thursday, 20 Feb 2020 14:02 PM

Malaysians can now purchase houses via eWallet

News & Articles
Monday, 24 Feb 2020 13:02 PM

When apartment managements say no to pets

News & Articles
Monday, 24 Feb 2020 10:02 AM

Gamuda adopts Yardi Elevate for leasing and deal management

News & Articles
Friday, 21 Feb 2020 17:02 PM

REHDA to host seminar on Strata Development & Dispute Resolutions

News & Articles
Thursday, 20 Feb 2020 17:02 PM

Mah Sing launches “Eazy to Own,” campaign

News & Articles
Thursday, 20 Feb 2020 15:02 PM

E&O to launch properties worth RM1.3bil in GDV

News & Articles
Thursday, 20 Feb 2020 14:02 PM

Malaysians can now purchase houses via eWallet

News & Articles
Monday, 24 Feb 2020 16:02 PM

Making your house eco-friendly

Home & Living
Tuesday, 18 Feb 2020 14:02 PM

House Cleaning Hacks With Baking Soda (Part 2)

Home & Living
Tuesday, 18 Feb 2020 14:02 PM

Troubleshooting with wallpapers

Home & Living
Tuesday, 11 Feb 2020 13:02 PM

5 Home Appliances To Combat Bacteria, Germs and Most Viruses

Home & Living
Tuesday, 28 Jan 2020 12:01 PM

How to protect your household from the flu virus

Home & Living
Friday, 17 Jan 2020 09:01 AM

5 tips to clean your home in time for Chinese New Year

Home & Living
Wednesday, 05 Feb 2020 10:02 AM

Final chance for landed property in Sunway City

Featured Dev
Friday, 03 Jan 2020 11:01 AM

The Park Sky Residence ushers in New Year

Featured Dev
Tuesday, 31 Dec 2019 15:12 PM

Advertorial: Affordable luxury at E’Island Lake Haven Residence

Featured Dev
Tuesday, 24 Dec 2019 16:12 PM

A magical Finland Christmas Market at Sunway Velocity Mall

Featured Dev
Monday, 16 Dec 2019 15:12 PM

Trinity of options at Tropicana

Featured Dev
Wednesday, 19 Feb 2020 14:02 PM

Startling results with The Starling

Events
Friday, 14 Feb 2020 18:02 PM

Something big is starting at the Starling

Events
Friday, 29 Nov 2019 14:11 PM

A German Christmas at Sunway Pyramid

Events
Friday, 01 Nov 2019 17:11 PM

Win free prizes while shopping for your dream home

Events
Monday, 08 Oct 2018 09:10 AM

Honoring the Southern developers

Awards 2018
Monday, 01 Oct 2018 17:10 PM

Quiet charm of Shah Alam

Best@
Thursday, 20 Sep 2018 13:09 PM

Johor an economic development powerhouse

Awards 2018
Thursday, 23 Aug 2018 17:08 PM

Best@Shah Alam: Fengshui talk

Best@
Thursday, 18 Jul 2019 12:07 PM

买电梯房哪几楼千万不能选?

潮樓產業
Tuesday, 16 Jul 2019 14:07 PM

全球房产泡沫哪区最严重?

潮樓產業
Friday, 12 Jul 2019 10:07 AM

如何评估一套房产是否值得投资

潮樓產業
Wednesday, 10 Jul 2019 16:07 PM

退休生活要怎么过?

潮樓產業
Wednesday, 10 Jul 2019 14:07 PM

购置二手房需注意什么法律问题?

潮樓產業
Tuesday, 09 Jul 2019 12:07 PM

有地房产或高楼住宅孰优孰劣?

潮樓產業