PROPERTYGURU: 2019 Property Hotspots
Focus Malaysia 14 Jan 2019 15:24
Despite improving consumer sentiment and proactive government policies announced in the Budget 2019, 2019 is likely to see a continued price downtrend for at least the first half of the year.
This is validated by the PropertyGuru Market Index (an analysis of over 250,000 property listings aggregated and indexed) which shows that asking prices of homes in Malaysia continue to show a 2.3% drop year on year - an opportune time for house buyers to purchase a home.
Riding this wave of opportunity, PropertyGuru’s online portal which has over 1.3 million Malaysians searching for properties, has seen a surge of interest in the following property hotspots identified in the various states of Kuala Lumpur, Selangor, Penang, and Johor.
2) MONT KIARA
While there has been a dip in asking prices, the demand for property in Kuala Lumpur is still strong with the most popular and highly searched areas being Bangsar, Mont Kiara and Cheras.
Property types that are most searched in these three areas are condominiums, followed by apartments and townhouses. The reason for high-rises being the most preferred property type in Kuala Lumpur may be due to their more affordable entry price points.
In terms of the price bracket, many are searching below the RM300,000 bracket which is not feasible for the locations that are preferred, since many of these locations are priced above the affordability range.
“There is an obvious mismatch between what is desired and what is actually achievable.
“And one of the best ways to check what is achievable is by utilising the PropertyGuru Mortgage Pre-Qualifier (https://www.propertyguru.com.my/mortgageprequalifier) that is able to tell buyers if they are eligible for a loan, in a 99.5% accuracy check,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.
1) PETALING JAYA
2) SHAH ALAM
3) SUBANG JAYA
The demand for properties in Selangor continues to be high despite declining prices, with properties in Petaling Jaya, Shah Alam, and Subang Jaya topping the list in this order.
Properties that are most searched for in these areas are condominiums, followed by apartments and two-storey terrace houses, with many looking at transit-oriented development (TOD) properties.
“There is a strong upswing in demand for properties strategically located or directly connected to the MRT and LRT lines.
“Other factors such as maintenance of the property as well as lifestyle facilities will play a part for buyers to ascertain if it is a right fit, given that buyers are spoilt for choices in a market that is saturated by supply,” added Fernandez.
2) BAYAN LEPAS
3) TANJUNG TOKONG
The most popular residential areas within Penang are Georgetown, Bayan Lepas, and Tanjung Tokong, with the common factors of all three locations being their centrality to either the city centre or the Penang International Airport.
Apartments and condominiums are the most desired types of residential properties in this area, followed by townhouses.
“Developers will continue to build smaller, high-rise units – 450 to 840 square feet, which offer flexible spatial layouts to cater for varying demographic segments such as single adults, young couples, 2+1 families, newly-weds, senior citizens or empty-nesters. These units will offer space-saving furniture to allow for greater space utility.
“Dual key units are likely to be popular to those who wish to work and live at the same place. These smaller sized units will be built closer to public transportation and will come with more facilities. The latter will be a key determining factor for developers to win over buyers,” said Fernandez.
1) JOHOR BAHRU
3) BUKIT INDAH
As compared to Kuala Lumpur, Selangor, and Penang which has been facing a downtrend since 2016, Johor was the only state that was experiencing an uptrend.
The fact that its prices is beginning to dip shows that the property prices in Johor may finally be correcting.
The most popular locations within Johor that property buyers are looking at are Johor Bahru, Nusajaya, and Bukit Indah. And unlike the other states where property buyers were most interested in high rises, in Johor the demand is highest for landed properties, especially two- storey terrace houses.
“Overall, despite the sluggish market condition, it’s a healthy situation as there is plenty of supply for both purchase and rental for Malaysians to choose from, and encouraging greater innovation and ideas to come to the fore, especially with regards to build and design, spatial use, technology and more.
“We’re passionate about home ownership in Malaysia, and it’s our mandate to ensure that Malaysians are well equipped about the state of their finances, what they can afford and how to best leverage on their chances to get a home loan, through the Own Your Home initiative which aims to help 100,000 Malaysians become actual homeowners by 2020,” added Fernandez.