Subdued asking prices in property market

Photo: PropertyGuru

KUALA LUMPUR: PropertyGuru Malaysia has found that asking prices for properties in Malaysia have dropped quarter-on-quarter (QoQ).

In its Property Market Index quarter one 2021 report, Kuala Lumpur, Johor and Penang registered a drop of 1.80 per cent, 0.83 per cent and 0.78 per cent respectively while Selangor is the only market with a slight increase of 0.84 per cent.

“With subdued asking prices coupled with favourable government incentives, this has resulted in more affordable options for purchasing property,” said its country manager, Sheldon Fernandez.

National Property Information Centre (Napic) also revealed that 50.5 per cent of new residential launches were properties priced below RM300,000, while those priced between RM300,001 and RM500,000 accounted for 24.7 per cent.

Landed properties dominated the new residential launches with 3,127 units launched in the quarter in review.

Fernandez said this would be an addition to the existing overhang units in Johor at 20.4 per cent, Selangor at 15.2 per cent and Kuala Lumpur at 10.1 per cent.

“Younger buyers are now keen to capitalise on the current low prices, conducive interest rates and current incentives, especially before the clock runs out on Home Ownership Campaign (HOC) enticements in May this year.

“Those looking to buy should note that the government has extended the stamp duty exemption on instruments of transfer and loan agreement for first-time home buyers, for properties up to RM500,000 per unit until Dec 31, 2025,” he said.

He said with the added opportunity of low interest rates, where Bank Negara Malaysia has decided to maintain the Overnight Policy Rate (OPR) at 1.75 per cent, the current market may see an early spike in transactional activity in 2021.

“Overall, it is likely the property market will recover at a slower rate than the overall economy, as improved financial confidence must first occur to spur consumer demand,” he added. – Bernama