Due to the Covid-19 pandemic, the world economy faced a crisis, and the real estate market was no exception.
But, after cases were reportedly decreasing and the public was allowed to come out, abiding by the new norms, plenty expect property prices to rise sharply due to several factors contributing to the rise in property prices. Among them is the “work from home” norm and stamp duty exemption for first homes.
Juwai IQI has surveyed to find out consumers’ opinions on post-Covid-19 property prices. What do consumers say about this? Let’s find out!
The survey was conducted throughout February and March, and a total of 394 Malaysian consumers completed the survey. All are of different states, backgrounds, and stature. Overall, the survey indicated that consumers expect property prices to rise.
A total of 48% of respondents expect house prices to rise, but 37% of them believe that it would only incline a little and not a huge increase.
Juwai IQI Co-Founder and Group CEO Kashif Ansari said, “More people believe home prices will rise in 2021 than that they will fall. Forty-eight percent believe home prices will go up this year, and only 34 percent think they will go down. The number of people who think home prices will go down ‘a lot’ is vanishingly small, at just 3 percent. That compares to 12 percent who believe the opposite, that home prices will climb ‘a lot.’
Below we provide the survey response according to the states and age of respondents:
Sarawak is the most optimistic state, with 62% of people believing that prices will rise in 2021. Only 24% in Sarawak believe they will fall.
Meanwhile, the most pessimistic state is Penang. 41% of people believe prices will fall this year, compared to 38% who believe prices will climb.
Overall, Gen Z (9 – 24), 68% believe that prices will rise compared to only 21% who think property prices will decline. Meanwhile, baby boomers (57-74) and other elders, 43% believe that prices will go down this year, and only 38% think that prices will go up.
It is phenomenal to see the younger generations aim to purchase a home during this year. With the current economy, property prices and loans are relatively cheaper than normal with a 1.75% OPR.
“When asked if they intend to purchase a home this year, two out of every five Malaysian said that they do. 40% of all respondents expect to purchase in 2021, while 42% do not.
“The youngest Malaysians are the most positive about the property market and the most likely to be purchasing homes this year. 54% of Gen Z respondents said they expect to buy a home this year, as did 46% of Millennials. While 33% of Boomers and 31% of Gen X also expect to buy homes this year, that is a lower share than their younger brethren.
With the survey carried out, Juwai IQI found that despite the volatile economic stature, real estate is still called a safe investment because it is necessary for consumers.
Article by: The Sun Daily