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72 per cent believe property prices to be rising in Malaysia

6/22/2012

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Despite reports of a moderation in property prices this year, a new survey by PropertyGuru Malaysia that a majority of people interested in property still believe prices will rise.

The survey from the first quarter of this year revealed that 72 per cent of respondents feel that property prices will increase in the next six months. This percentage is significantly higher than the percentage of respondents in previous surveys from the fourth and the first quarter of 2011, 61 and 71 per cent respectively.

The increase may be contributed to the belief that property transactions would not fall but rise over the next six months, reported The Sun Daily.

64 per cent of respondents from the survey believe transactions will increase, compared to 57 per cent in the fourth quarter of 2011. 

Especially transactions and prices for condominiums and apartments, and terrace houses in particular, are expected by more than half of respondents to rise as they are considered the most popular type of property.

According to The Sun Daily, only 25 per cent of respondents from Klang Valley consider property to be affordable, compared to 46 per cent in southern Malaysia and 33 per cent in northern Malaysia.

Among potential first-time buyers, 40 per cent are renting due to unaffordable property prices, while 20% are renting due to unreliable financing options, reported The Sun Daily.


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