The PropertyGuru Market Index (“PMI”) indicates a quarterly price drop of 1.8 percent while the annual trend shows a decline of 2.5 percent, showing that asking prices of homes in Malaysia continue to drop nationwide especially within key property epicentres of Kuala Lumpur, Selangor, Johor and Penang.
The downward trend can be seen in both the quarterly and annual price movements despite an improved consumer sentiment of 42 percent and 53 percent of Malaysians wishing to buy a home by the end of 2018. In lieu of this, the real estate in certain market segments and locations are coming under increased pressure with sellers continuing to discount prices to secure buyers.
“Others may be opting to sell as rental rates also come under pressure due to the ample choice available in key areas. With more supply, one can drop rental rates but if that is not feasible, the usual option is to sell to unlock the gains,” highlighted PropertyGuru Malaysia Country Manager, Sheldon Fernandez.
Similar to the national trend, all key property epicentres in Q3 2018, recorded a quarterly decrease. Kuala Lumpur saw the largest drop by 3.2 percent from the previous quarter, followed by Johor at 3.3 percent, Selangor at 1.8 percent and Penang at 1.3 percent. Johor has been on an upward trend experiencing an upward capital appreciation in the market from Q4 2016 till Q2 2018 until a slight Year-on-Year dip of 2.3 percent was recorded in Q3 2018.
On an annual basis, Selangor recorded the highest yearly decrement with 2.4 percent, followed by Johor at 2.3 percent, Penang at 0.7 percent and Kuala Lumpur at 0.5 percent. With the exception of Johor, all regional markets continue to show a discount to their 2015 base prices. Johor continues to maintain an upwards trend-line, but it remains to be seen if the trend will persist going into Q4 2018 and 2019.
The PMI Report is derived from PropertyGuru’s extensive proprietary data, which includes (but is not limited to) the asking prices of over 250,000 residential property listings on PropertyGuru.com.my. PMI is a comprehensive, quarterly overview of home pricing trends at national level, as well as the key property markets of Kuala Lumpur, Selangor, Johor and Penang.
For the full press release, visit https://www.propertyguru.com.my/media/press-release/propertyguru-malaysia-property-prices-decline-2-5-percent
The full PMI Q3 2018 report is available at: https://www.propertyguru.com.my/marketindex
