Location Is Still The Most Important Factor For House Buyers In 2017

Location Is Still The Most Important Factor For House Buyers In 2017

Location is found to still be the most important factor in the recent PropertyGuru’s Malaysia Property Market Sentiment Survey, while safety and property size rank above price for Malaysian homebuyers in 2017.

This change in home-buying criteria is due to more Malaysians turning to residential areas father away from urban areas, said PropertyGuru Malaysia manager Sheldon Fernandez.

“As people look to new areas outside of the city centre that meets their budget, location remains a priority but with safety and security growing in importance.

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“Living further away, people generally want the benefit of space. Hence, the emergence of these three factors at the top,” Fernandez said.

The top considerations are location (98%), security and safety of the property location (84%) and property size (73%) in a list of 18 factors.

Top 8 considerations for prospective house buyers for 2017
Top 8 considerations for prospective house buyers for 2016
Property location
98%
Property location
61%
Security and safety
84%
Per-square-foot (PSF) price
59%
Property size
73%
Future developments in the area
58%
Infrastructure and available amenities
70%
Potential rental yield
Property size
Developer’s reputation
57%
Developer’s reputation
67%
Security and safety
Property tenure (leasehold/freehold)
56%
Future developments in the area
64%
Loan eligibility
55%
Property tenure (leasehold/freehold)
63%
Potential capital appreciation
54%
Per-square-foot (PSF) price
60%
Subsidies
54%
Source: PropertyGuru Malaysia

 

The survey findings point to a shift in mind-set this year, Fernandez added.

The potential rental yield factor sliding down the list indicates that there are now more “owner-occupiers” rather than investors in the market.

“But importantly, foremost on the minds of Malaysians is to secure a property; to get a roof over their heads whereas before they would probably also be thinking of potential rental yields and capital appreciation,” he said.

Though potential rental yield (57%) and potential capital appreciation (54%) both found their way in the top 8 list last year, both factors took the 11th spot this year at 53%.

Price is still an important driver

Though price is not ranked in the top three considerations, it is still an important factor that sway Malaysians’ house buying decision.

This is evident in the increased demand for affordable housing and the falling demand for luxury homes.

The survey found that close to 40% of 577 respondents were prepared to spend RM300,000 to RM500,000 to buy a property in 2017. This indicates “the sweet spot of what the majority of Malaysians are willing to fork out for a home”, said Fernandez.

“This is consistent with market trends, where properties priced RM300,000 to RM500,000 have done well. Properties priced between RM500,000 to RM700,000 will also see some movement.

“But 2017 is unlikely to see a recovery in the higher-end market. Properties closer to the RM1 million mark will generally be hard to sell though there will always be exceptions,” he said.

The survey also found an increased interest in properties located in the outskirts of Selangor, with 29% of potential house buyers now regarding those areas as preferred location for houses, compared to only 25% in 2016.

“This indicates the emergence of new property hotspots in suburban areas of Selangor — between 20-40km from the city centre such as Rawang, Sungai Buloh, Semenyih, Ulu Kelang, Ampang and others,” he said in the statement.

Apartments and condominiums remain top choices followed by landed terrace houses. However, demand for bungalows and semi-detached homes – typically priced higher – wanes in 2017.

[Source]

Image from The Sydney Morning Herald

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