Press Release - Survey by The iProperty Group Finds that Affordable Housing Continues to Remain a Concern Amongst Malaysians
Press Release For Immediate Release SURVEY BY THE IPROPERTY GROUP FINDS THAT AFFORDABLE HOUSING CONTINUES TO REMAIN A CONCERN AMONGST MALAYSIANSKuala Lumpur, 5th February 2013 – Survey findings by the iProperty Group, Asia’s No.1 network ofproperty portals, have revealed that affordability and rising house prices continue to remain a majorconcern among Malaysians.The iProperty.com Asia Property Market Sentiment Survey (H1) 2013, conducted on the iPropertyGroup’s leading websites in Malaysia (iproperty.com.my), Indonesia (Rumah123.com andrumahdanproperti.com), Hong Kong (GoHome.com.hk) and Singapore (iproperty.com.sg), is the firstcross-market online property survey of its kind.Key Findings in Malaysia: - Malaysians reported the highest annual household income compared to respondents in Indonesia, Hong Kong and Singapore - Malaysians continue to own significantly more than one property (41%) compared to respondents in Indonesia (16%), Hong Kong (18%) and Singapore (22%) - Location and Price remains the two most important factors of consideration in determining the purchase of property - Similar to previous survey findings, affordability and rising house prices continue to remain the biggest concern among respondents (70%). Respondents think that property prices will increase across all dwelling types with landed property becoming less affordable in the first half of 2013 - 65% are not convinced that 30 abandoned housing projects in Malaysia will be revived, despite reports that the Housing and Local Government Ministry succeeded in reaching its Key Performance Indicator by reviving 32 abandoned housing projects in 2012 - 47% feel that more should be done to protect property buyers in the country - 65% do not think that the allocation of MYR1.9 million to build 123,000 affordable housing units in strategic locations in 2013 will be effective in meeting the rising housing demand for low-to middle-income earners - Respondents were largely split between wanting the government to do more (32%) and believing that the recent increase in income limit for My First Home Scheme will do enough to assist more people in their homeownership journey (32%)
- 45% do not think that that the increase in the Real Property Gains Tax from 10% to 15% for properties sold within the first 2 years, while properties sold from the third to fifth year will be increased from 5% to 10%, will curb speculation - Only 19% of respondents want to invest in property overseas with the top three destinations being Australia, Singapore and the United KingdomShedding further light on the iProperty.com Asia Property Market Sentiment (H1) 2013 survey findings,iProperty Group’s Chief Executive Officer, Shaun Di Gregorio, said that despite the residential propertymarket in Malaysia being buoyant in the past two years, in 2013, property buyers are treading carefullywhile adopting a wait-and-observe stance.“Malaysia’s economy is projected to grow at a healthy pace of between 4.5% and 5% in 2012 and at thesame time, a number of key infrastructure projects are being implemented under the EconomicTransformation Programme. However, with the prolonged global economic uncertainties, morestringent vetting process adopted by banks and the implementation of the various measures by thegovernment to avoid an asset bubble, local and foreign investors are being cautious in their approach topurchase and invest in property,” said Di Gregorio.The FindingsThe survey polled over 8,000 respondents from Malaysia and the majority of respondents were agedbetween 26 to 35 years old and 57% had an annual household income between MYR 30,001 – MYR80,000.When it came to purchasing property, 79% indicated that they wanted to purchase property within 6months to 2 years. 34% indicated that their budget is MYR350,001 to MYR500,000 followed by 32% whowould spend up to MYR350,000 for a property. Purchasing a home of more than MYR400,000, based ona 30-year repayment period, in a matured or burgeoning areas may not be a viable option forrespondents with an annual household income of less than MYR60,000.The findings have revealed that landed property continues to be the most popular choice amongrespondents. High-rise living is also gaining fast popularity possibly due to a greater appreciation forcondo facilities and security features. With the stock market being too volatile, unit trusts returns arelow and bond investments being too complicated, it was not surprising to see that 33% of respondentsviewing property as a long term investment while 28% wants to purchase property to provide a betterenvironment for their family.Half of Malaysian’s surveyed answered that property prices are too highly priced, while 16% answeredthat they cannot find a suitable property.“This could be because of the budget that these respondents have, finding a home in a location thatthey desire is not feasible as properties in a good location are beyond the loan repayment capabilities ofthe country’s young population. Malaysia’s property prices are certainly lower compared to ourneighbouring countries, especially Singapore and Hong Kong,” said Di Gregorio.
On the interest of investing in property overseas, 36% of Singaporean respondents showed a higherinterest compared to respondents from Malaysia (19%), Indonesia (17%) and Hong Kong (11%).“Singaporeans are cashing in on a market where they will be able to get more value for their investment.According to Bloomberg, the Singapore dollar has risen more than 5.5% in the past 12 months and is thesecond-best performer among the 11 Asian currencies. Hence it was not surprising that Singaporeanswould pick Malaysia (42%) over Australia (14%) and the United Kingdom (8%) as their top threedestination of choice,” elaborated Di Gregorio.Malaysian Property Market Sentiment – Affordability gets Top of Mind ConcernA majority of respondents are calling for more affordable housings (69%), as it is likely that manyfamilies are starting to feel the weight of soaring property prices as opposed to wages, which continueto grow at a slower rate.According to Di Gregorio, high property prices translate into higher rentals, which mean that urbandwellers who cannot afford to buy houses have to spend a fair bit on rent. This is in addition to thecurrent cost of living such as car ownership as well as rising prices of food, products and services.While Budget 2013 promised a MYR1.9 billion allocation to build 123,000 affordable housing units instrategic locations, Kuala Lumpur, Shah Alam, Johor Bahru, Seremban and Kuantan, 65% of respondentsdid not think the move will be effective in meeting the rising housing demand for low-to middle-incomeearners.In addition to that, with the raise from MYR3,000 to MYR5,000 in the income limit for individual loansand a combined household income of MYR10,000 between husband and wife under the My First HomeScheme, 32% believed that the move will assist more people in their homeownership journey, while 28%did not think it will.Outlook for H1 2013The residential property market during the first quarter of 2013 is expected to be soft as investors stayon the sidelines. Sales of landed and strata homes are expected to slow down while prices generallyremain stable. Price correction may also take place involving landed and strata homes in secondarylocations.The outlook for property investors in 2013 is still positive especially with selected locations poised toexperience rapid growth.The full survey findings can be downloaded directly from www.iproperty.com.my ***The End***
About iProperty Group Limited (www.iproperty-group.com)Listed on the Australian Securities Exchange, the iProperty Group (ASX:IPP) owns and operatesAsia’s No.1 network of property websites under the iProperty.com umbrella brand.Headquartered in Kuala Lumpur, Malaysia, the Company is focused on developing andoperating leading property portals with other complementary offerings in Asian markets. Itcurrently operates market leading property portals in Malaysia, Hong Kong, Macau, Indonesiaand Singapore, and has investments in India and Philippines. With further expansion planned,the iProperty Group is continuously working to capitalise on its market-leading positions andthe rapidly growing online property advertising market throughout the region.Along with 18 property websites across the region, the Group’s portfolio also includes the firstcomprehensive regional commercial property website, CommercialAsia.com, as well as aregional property exhibition business and monthly property magazines in Malaysia andIndonesia.iProperty Group Network of websites: • Malaysia: iProperty.com.my • Indonesia: rumah123.com and rumahdanproperti.com • Hong Kong: GoHome.com.hk • Macau: vProperty.com • Singapore: iProperty.com.sg • Commercial: CommercialAsia.com • India: in.iProperty.com • Philippines: iProperty.com.ph • Events: expo.iproperty.com • Luxury: iLuxuryasia.comFor media enquiries and interviews, please contact:Debbie Pereira (Ms)PR ManagerMobile: +6016 2334 386DID: +603 2264 6888Email: email@example.com