When you’re thinking about buying a property, there are lots of important details to contemplate and consider.
Among them is the type of property that will fit your needs, budget, and lifestyle. Do you want a landed property or a high-rise? What built-up size suits your preferences?
In many cases when we buy a home, we’re keeping one eye on the future. That can be things like choosing a home for retirement, with the promise to pay off a home loan in full, and enjoy a relaxing place to live.
Of course, often we’re also viewing this as an investment, and the feeling of building a valuable asset that we can profit from later. That’s an undeniable benefit of owning a property!
Now, all of these considerations matter, because they’re able to give you an idea of just which type of property you might want to live in.
A 5-bedroom semi-D might be a good idea now for a young, growing family, but not so much when the kids leave the nest and the elderly parents need to care for a big house on their own.
On the other hand, buying a condo in the heart of KL could be the ideal location for a young professional, but a high-rise property might not be the most convenient place to live out your golden years.
Imagine, the building experiencing a power cut and having to walk all the way up to your unit with bad aching knees!
Before you decide on a particular type of property, consider a few different options, and write down a list of pros and cons about each property type.
So with all these considerations in mind, what does the current landscape tell us about preferences and priorities of Malaysian home buyers today?
10 Top Property Types Most Viewed by Malaysians
To get an idea of what property types Malaysians were eyeing in Q1 2021, we decided to take a look at data from PropertyGuru’s "For Sale" listings (arranged in descending order):
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Property Type
|
Average % Of Views
|
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Condo
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17.85%
|
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Serviced Apartment
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16.4%
|
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3-storey Terraced
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15.1%
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|
Apartment
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13.4%
|
|
3.5-storey Terraced
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10.4%
|
|
2-storey Terraced
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9.6%
|
|
Flat
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8.5%
|
|
Duplex
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8.5%
|
|
SOHO
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6.8%
|
|
2.5-storey terraced
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5.3%
|
The most-viewed property type among Malaysians were condominiums, with an average of 17.85% views in Q1 2021. This is in line with the popularity of such developments among urbanites.
With high-rise units accounting for a 53.2% share of the total residential overhang in the country, there are lots of choices on the market!
Next, we have serviced apartments with an average of 16.4% views. This could be attributed to the availability of luxury units left vacant by expats returning to their home countries in light of the pandemic, or the rapid growth in the serviced apartment segment over the last few years.
At 15.1% of views, third place goes to 3-storey terraced houses. With uncertainty surrounding the pandemic looming, large families may be considering consolidating expenses by living together in a bigger space that also caters to work-from-home needs.
Apartments come next, with 13.4% views. The Home Ownership Campaign (HOC), which has been extended to 31st December 2021, is seen as a driving force for the increased interest.
This allows buyers the opportunity to capitalise on savings, while acquiring the home of their dreams, and could be contributing to views of properties such as apartments (which are generally slightly more affordable than condos).
Coming in at number five is the 3.5-storey terraced house segment, which saw an average of 10.4% views, while sixth place goes to 2-storey terraced houses, with an average of 9.6% views.
This suggests a growing interest in landed properties amid a downtrend in overall asking prices across three key markets, namely, Kuala Lumpur, Johor, and Penang.
According to PropertyGuru’s Malaysia Property Market Index (MPMI) report, in the first quarter of 2021, overall asking prices nationwide reduced by 0.84% quarter-on-quarter and 1.79% year-on-year.
Selangor, at +0.84%, was the only state within the same time-frame to record a positive price movement!
The seventh largest number of views by property type was flats with 8.5%, only just slightly outperforming duplexes which saw an average of 8.47% views.
Rounding up the list of most-viewed property types by Malaysians was SOHOs with an average of 6.8%, and finally, 2.5-storey terraced houses at 5.3% of views.
What Does This Mean For Homebuyers?
The current spike in COVID-19 cases across the globe, coupled with tighter restrictions in Malaysia following the implementation of MCO 3.0, means property prices will likely remain low before seeing any recovery.
But it also means we’re all desperately looking for properties on PropertyGuru in hopes of finding that dream home soon!
We just can’t really go and visit them in person… yet. However, thanks to the rise in popularity of virtual property tours, Malaysians still get to continue their property search from the comforts of home.
There’s a chance that this pent-up demand will explode towards the end of 2021, as all those eager buyers stuck at home dreaming of the little things they want to change in their current home, end up wanting to make bigger choices with a change of scenery in the future!
Savvy first-time homebuyers should look out for developments that offer flexible down payments amid the current climate of low prices, attractive incentives, and low interest rates.
Another option is to go for rent-to-own schemes. This allows you to live in the property, experience the neighbourhood, and enjoy all the amenities nearby before committing to purchasing it.
This gives us an opportunity to take a step back and assess our options, including the perfect property type that fits our current and future lifestyle, growing family needs, as well as manage expectations.
With a significant property overhang, it may be that while demand increases, prices may stay stubbornly subdued. That’s potentially a great chance to acquire the house of your dreams at a bargain cost.
On the other hand, there is a chance that after months cooped up at home, buyers are eager to rush out and acquire a better place to live.
That could see a more rapid rebound of prices, and a return to something that looks a little more like a seller’s market once again.
It’s hard to say definitively what house prices might look like in the second half of 2021, but it’s clear from these figures that everyone is still looking!
Relevant Guides:
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Stamp Duty In Malaysia: Everything You Need To Know!
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Different Types Of Property Investment In Malaysia, And How To Earn From Them
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7 Advantages Of A Slow Property Market For Property Buyers
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Disclaimer: The information is provided for general information only. PropertyGuru International (Malaysia) Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.