Survey: 75% of Malaysians feel local real estate is expensive

PETALING JAYA: 75% of Malaysians are unhappy with the current property market, citing expensive, overpriced properties and lack of government action, according to a recent consumer sentiment survey conducted by PropertyGuru Group.
In a statement released yesterday, the region’s leading property portal said, only 25% felt satisfied with general conditions of the property market, with a significant drop from the 32% registered in last year’s sentiment survey.
“Most also remain pessimistic – expecting prices to spiral further across all property classes, albeit at a slower rate than in 2014,” it added.
PropertyGuru said the key reasons cited are the perception that properties are overpriced (86%), rapid increase of prices (61%), laggard economy (57%) and unpredictable real estate conditions (37%).
Aside from prices, it said lack of effort by government to address the current climate of the local property sector is another issue cited for dissatisfaction, noting 78% of respondents felt current action was insufficient, compared with 73% in the first half of 2014.
“Since the first half of 2013, there has been a constant decline in satisfaction among consumers. It has now hit the lowest thus far, with 75% saying market conditions are unconducive,” PropertyGuru Malaysia country manager Sheldon Fernandez said.
Meanwhile, Sheldon said one out of three respondents citing difficulty in attaining approval for bank loans as a key source of their dissatisfaction.
He also added that given the status quo, there will likely be a further drop in consumer sentiment in the next six months.