Highly sought-after locations such as Petaling Jaya and Damansara remain high in demand, according to the Malaysia Consumer Sentiment Study H1 2020.
In the report which saw 924 Malaysians surveyed, 63% are keen on purchasing a property within the next 2 years.
Stretching the timeline to 3-5 years, there still seems to be demand with 27% of Malaysians intending to buy a property.
Location-wise, it appears that not many Malaysians are looking further abroad for a home. Only 8% stated their intention to buy overseas, as compared to 83% who intend to buy within Malaysia.
Malaysians still highly keen on Klang Valley
To no surprise, the Klang Valley remains the most desirable address. With a landslide percentage of 60% of respondents eyeing the area for their future home, the convenience and maturity of the area are still unrivaled.
In comparison, the second-most sought after location was Cyberjaya at 14% of total respondents looking for a property there. This is followed by Penang at 12%, Putrajaya at 11% and Johor at 10%.
The Eastern region comprising Kelantan, Terengganu and Pahang seemed to be the least favorable for respondents, at only 3%.
Petaling Jaya takes the lead as most desired
Within the Klang Valley, Petaling Jaya topped the list – having proved to be the highest in demand with 40% of respondents looking to purchase a property in that area.
The highly accessible and highly established gem of the Klang Valley is followed by Damansara and Kuala Lumpur City Centre, with both these areas garnering an equal percentage of 34% each.
These top three choices are followed by Subang Jaya, Shah Alam and Cheras at 29%, 26% and 22% respectively.
New developments preferred over subsale
In terms of the type of property, the majority of Malaysians are looking for a newly developed property rather than those in the sub-sale market.
82% of respondents stated that a new unit was their preferred choice of property. This sentiment is shared among all age groups and marital statuses as well.
That’s not to say that sub-sale or secondhand properties aren’t within consideration for keen home buyers though. While new properties enjoy higher demand, about half of respondents (48%) are still on the hunt for a suitable property in the sub-sale market.
Even auctioned properties get their fair share of the pie too, with 24% keen to bid for the chance of nabbing a sweet deal below market rate.
Investment and capital gains top the list
When asked their reasons for purchasing a new home, almost half (47%) of respondents declared investment purposes to be their primary reason.
The other top reasons follow along a similar lifestyle vein – the need for more space to fit children or parents (31%), greater convenience (28%) as well as the need for more personal space (27%).
Further delving into the demographics, we see that younger Malaysians between the age of 22-29 regard personal space as more important compared to all other age groups.
With all that said, the biggest reason for young Malaysians to get a home aside from investment is due to marriage, as well as the need to break free from their current rental situations and possess a home of their own.
Top 6 most in-demand areas to buy a property
1) Petaling Jaya – 40%
As mentioned, Petaling Jaya is highest in demand among Malaysians looking to buy a home within the next 2 years.
This comes as no surprise. The thriving city balances perfectly between work, play and lifestyle. Not too suburban nor commercial, not insanely unaffordable as it is compared to the KLCC area, and yet highly accessible thanks to the Kelana Jaya LRT line.
PJ’s demand is reflected by its prices in PropertyGuru’s AreaInsider, where prices continue to increase at a reasonably steady pace.
One exciting new high-rise recently launched in the heart of PJ-Damansara is 121 Residences by Glomac Bhd, which banks on its proximity to the upcoming Damansara Utama LRT 3 station and location between prime townships.
2) Damansara – 34%
Straddling PJ is Damansara, with 34% of respondents eyeing a home in the area.
Damansara is a central commercial hub nearby Kuala Lumpur, and houses affluent addresses such as Bangsar, Bukit Damansara and Taman Tun Dr Ismail (TTDI).
Based on price trends as recorded by PropertyGuru in the last 24 months, condominiums in this area see an average price per sq ft of RM795.
Despite this, there are more affordable options on the market such as Palm Springs in Kota Damansara. At about RM390 psf, this condo just 5 minutes away from IKEA and The Curve is budget-friendly without compromising on convenience.
3) Kuala Lumpur City Centre – 34%
The heart of Malaysia’s economic and business development, owning a property in KLCC is perhaps the epitome of urban splendour.
One look at its median price of slightly over 1.4 million and that should come as no surprise. In fact, it’s a well-known rule that the price of properties drops the further its radius from KLCC.
Such figures don’t seem to deter buyers though, seeing as 34% of survey respondents are still keen on buying a property in KLCC.
Seeing as almost half of respondents also said that investment was their main purpose for buying a property, the compound annual growth rate of 14.1% in median price will bode well for buyers who are able to afford it.
4) Subang Jaya – 29%
Venturing out from the capital, Subang Jaya boasts good popularity as a buyer’s hotspot too.
Residential properties make for the majority of properties here. Hence, the area is spotted with parks and greenery, and enjoys ample amenities without the hustle and bustle one would experience with KLCC for example – making it highly suitable for growing families.
Young professionals shouldn’t steer clear of Subang Jaya though. Certain properties offer attractive prices for single room units, mostly catered to students due to multiple universities in the vicinity.
5) Shah Alam – 26%
Neighboring Subang Jaya is Shah Alam, where 26% of respondents are looking to buy a property.
The city is a quiet one, and is more popular among Malay speakers. This is revealed in the survey results where there are twice as many Malay speakers expressing interest in the area than English speakers.
Based on the listings on PropertyGuru, market prices for properties in Shah Alam are steady and don’t tend to fluctuate too drastically.
One of Shah Alam’s newest developments to look out for is Setia City Residences in Setia Alam. The high-rise located right next to Setia City Mall is priced between RM580,000 to RM800,000. Read the full review here.
6) Cheras – 22%
Cheras is the sixth most popular hotspot for Malaysians, as seen by the 22% of Malaysians who are looking to purchase a property in the area.
The suburb stretches from KL to Kajang, all the way to Selangor. Though malls like MyTown and Sunway Velocity have only come up in recent years, they’ve cemented themselves as major affluent malls catering to many white-collars and families in the area.
In terms of public transport, commuters are more than well catered to thanks to the Sungai Buloh-Kajang MRT line which services the area through multiple stations.
Condominium prices for the last 24 months in Cheras has seen a rather steady rise in price per sq ft, reflecting the healthy compound annual growth rate of 6.6%.
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