Poll: Buyers bullish on property affordability

HomeGuru.com.my, Malaysia’s property expert, has revealed key findings to its Q3 Malaysia Property Sentiment Survey 2011.

Opinions of Malaysian property buyers were gathered and tabulated by a research team at HomeGuru in partnership with independent research consultants though a survey conducted from October 11 to October 31, 2011 to gain a better perspective on the Malaysian property market, consumer sentiment and buying intentions as well as views that reflect consumer property buying intentions and impact of government measures and policies.

In efforts to achieve rounded results, the survey data was collected from HomeGuru users; reaching a cross-representative of Malaysia’s population spanning the Klang Valley (Kuala Lumpur, Selangor and Putrajaya), Northern Malaysia (Penang, Kedah, Kelantan, Perak, Pahang, Terengganu and Perlis), Southern Malaysia (Johor, Melaka and Negeri Sembilan) and East Malaysia (Sabah and Sarawak).

HomeGuru’s country manager, Steven Tan discloses, “HomeGuru, via the third quarter (Q3) Sentiment Survey, has discovered that compared to second quarter (Q2), there is a 10 per cent decline in respondents who believe that property in Malaysia are too expensive, indicating that buyers are more confident about being able to afford property purchases.”

However, while the 1Malaysia Housing Programme (PR1MA) has garnered positive responses, majority of respondents are not in favour of two potential government policies entailing the control of house rental increase and the implementation of a one-house-per-individual restriction.

In line with the survey results pertaining to government actions, Tan adds, “The Q3 Sentiment Survey has shown negative response towards the My First Home Scheme, which can be attributed to the low income bracket of RM3,000 per month.

However, the government has been reported to be reviewing this income ceiling to a higher figure so we hope to see increased confidence amongst house-buyers should the eligibility amendment be implemented.”

On the note of overseas property investment, survey respondents listed Singapore, Australia, United Kingdom, India and Indonesia as the top destinations of choice. “The interesting point about this portion of the survey is how consumers are considering Indonesia for property investment as Indonesia was not in the list of top choices according to our second quarter 2011 survey findings,” states Tan.

Other key findings of the HomeGuru Q3 Malaysia Property Sentiment Survey 2011 are:

- 63 per cent feel all property types in Malaysia are expensive compared to the 73 per cent in Q2.
- Bungalows are the most expensive with 78 per cent of respondents feeling this way, compared to 89 per cent in Q2. ·
- An average of 27 per cent of respondent says bungalow, apartment/condominium, terrace/ link house, townhouse and SOHO (small office home office) are affordable compared to 17 per cent in Q2.
- 34 per cent perceive commercial property reasonable compared to the 22 per cent in Q2, showing an increase of 12 percentage points.
- 55 per cent feel property prices will increase in the next six months compared to the 86 per cent in Q2, showing a decrease of 31 per cent.
- 50 per cent believe the number of property transactions would stay the same or decrease compared to 18 per cent in Q2.
- 60 per cent want the government to do more to keep property prices in Malaysia affordable compared to the 70 per cent in Q2. - 64 per cent of responses are positive towards the PR1MA scheme.
- 53 per cent of responses are negative towards the My First Home Scheme.
- Almost 70 per cent disagree to the government’s potential policy of imposing one-house-per-individual restriction.
- Almost 63 per cent are unsure of or disagree to the government’s potential policy to control the increase of house rents. ·

- Similar to Q2, 18 per cent would definitely buy property in Malaysia. In Q1, this was 23 per cent. 24 per cent are interested in investing overseas with Singapore, Australia, United Kingdom, India and Indonesia being the top five preferred destinations.

HomeGuru’s Malaysia Q3 Malaysia Property Sentiment Survey 2011 is part of an on-going quarterly property survey that is aimed to gaining insights into consumer sentiments, understanding buying intentions and the impact of government measures. As Malaysia’s Property Expert, HomeGuru also sees the quarterly survey as a way to capture trends and help property agents, developers and Malaysian buyers make efficient and informed decisions regarding property purchases.

The full report on HomeGuru’sQ3 Malaysia Property Sentiment Survey 2011 is scheduled to be released by end of November 2011 while the next sentiment survey will be conducted in January 2012. -- Bernama