According to the PropertyGuru Market Index (PMI) that tracks the asking prices of homes in Malaysia, prices of residential homes on the whole is remaining stable with a 0.2% decrease from Q2 2017 to Q3 2017, while the year-on-year comparison shows a 2.3% drop.
Despite a recovery in consumer sentiment, asking prices have yet to reflect this positivity. The slow appreciation on a nationwide level with some key markets such as Selangor and Penang, continuing to show price decline on a quarterly basis.
As prices moderate on a national level, the PMI also indicated a drop of 1.4% in asking prices in Q3 2017 for Kuala Lumpur, following a 0.4% increase in Q2 2017. On a year-on-year comparison, KL properties saw prices decrease by 2.3%.
Meanwhile, the Johor property market saw prices strengthening by 0.5% and 1.7% in Q2 and Q3 2017 respectively. On a yearly basis, Johor’s Market Index experienced the most improvement with an increment of 7% from Q3 2016 to Q3 2017.
Marking the fourth consecutive quarter that Johor’s property prices have been on the uptrend, some of the factors include the entry of foreign property buyers, coupled with the weakening Ringgit.
While prices have not appreciated much and asking prices have moderated, unaffordability remains a major issue with many potential buyers expressing dissatisfaction with prices.
“Our data shows that 50% of Malaysians wish to transact within this year. However, despite the existing market stability and incentives provided by property developers, consumers feel that properties are still overpriced. We’ll have to see how this plays in the upcoming quarter,” said Sheldon Fernandez, PropertyGuru Malaysia Country Manager.