Malaysia

Property Market Report

Q2 2022
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 Executive Summary
In the first quarter of 2022, the Malaysian property
market continues to progress at a cautiously measured
pace. While the Sale Price Index and Supply Index in Q1
2022 captured by PropertyGuru DataSense revealed
upward movements of 1.04% and 0.31% quarter-on-
quarter (QoQ) respectively, there was a decline in the
overall demand by 2.40%.

Overall, the expected market improvements forecasted

for the first half of the year have come into play, but
the slow pace of recovery suggests that any cause for
optimism is being embraced with a proverbial “pinch of
salt”.

Affordability issues and financial insecurities in the

wake of the COVID-19 pandemic continues to weigh
heavily on the perception and the changing priorities of
home seekers, who are now gravitating heavily towards
rental properties as a solution.

Q2 2022 - Sale The Rental Market Index continues to rise steadily,

Sale Price Index
showing promising growth. The Rental Price Index
QoQ: 1.04% increased by 1.22%, Rental Supply Index moved upwards
by 1.68%, and the Rental Demand Index saw a
Sale Supply Index
QoQ: 0.31% significant improvement of 4.26% QoQ.

Sale Demand Index Looking ahead, Bank Negara Malaysia (BNM) notes
QoQ: -2.40% that while there have been visible improvements in the
overall economy and financial sector, the high number
of unsold properties remains a key issue the housing
industry must deal with.
Q2 2022 - Rental
In its Financial Stability Review H2 2021, the central
Rental Price Index
QoQ: 1.22% bank’s report stated that the number of unsold housing
units stood at 180,702 as of Q3 2021. While the volume of
Rental Supply Index
QoQ: 1.68% unsold units continues to reflect pre-existing
affordability issues, pandemic disruptions have
Rental Demand Index
worsened the situation by further slowing the clearance
QoQ: 4.62% of property stock.

PropertyGuru Malaysia Property Market Report Q2 2022

 Executive Summary
(con't)
From a macroeconomic perspective, buyers should be
wary of rising global inflationary forces. Two years of
pandemic disruption have taken a toll on supply chains
the world over, and the return of demand is now
causing a bottleneck for vital commodities such as raw
materials. This will push prices upwards.

As such, Malaysia’s current large volume of unsold

housing units could represent a final opportunity to
snap up properties before a hike in development cost
makes its presence felt.

PropertyGuru Malaysia Property Sale Market

Index Q2 2022
The Price Index tracks
median asking prices
365
of all property for sale
listings on
100 PropertyGuru
Sale Supply and Sale Demand Index

Malaysia.
98
Sale Price Index

96 The Supply Index

223 tracks the number of
all property for sale
94
listings on
PropertyGuru
92 Malaysia.

90 The Demand Index

80 tracks the number of
enquiries of all
20 Q1
20 Q2
20 Q3
20 Q4
20 Q1
20 Q2
20 Q3
20 Q4
20 Q1
20 Q2
20 Q3
20 Q4
20 Q1
20 Q2
20 Q3
20 Q4
Q1

property for sale

18
18
18
18
19
19
19
19
20
20
20
20
21
21
21
21
22

listings on
20

PropertyGuru
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Malaysia.

Note: In addition to the changes in the data set and computation methods used, the indices in the new Malaysia
Property Market Report use Q1 2018 as the Base Quarter. In previous reports, the indices used Q4 2016 as the Base Quarter.

PropertyGuru Malaysia Property Market Report Q2 2022

 Contents
1 Get the GuruView

2 Malaysia Property Sale

Market Index
3 Malaysia Property
Rental Market Index
4 High-Rise Property Sale
and Rental Market Index
5 Landed Property Sale
and Rental Market Index
6 Area Focus

7 Conclusion

8 About This Report

Methodology
9 About PropertyGuru

PropertyGuru Malaysia Property Market Report Q2 2022

Marginal gains on the Sale Price
Index by 1.04% QoQ and a slower
increase of supply by 0.31% QoQ
in Q1 2022 indicates the market is
now cooling off after gaining
some ground in H2 2021.

The end of HOC has created a void

in buyer incentives for the market,
pushing demand for property
purchases on a downward trend by
2.40% QoQ in Q1 2022.
hi

Rental demand and supply are on

the rise by 4.62% and 1.68%
respectively, as are rental prices
by 1.22% QoQ in Q1 2022, as home
seekers now shift their attention to
the secondary market due to
affordability and difficulties in
attaining mortgage financing.

Despite a subdued market, landed

properties such as terrace houses
continue to be a favoured target for
would-be buyers, however, the
interest in condominiums is on par
with landed homes among
millennials.
hi

Market experts anticipate a better

economic climate by the second
half of the year, based on positive
GDP growth forecasts and
reopened international borders.
 Malaysia Property Sale
Market Index
The Malaysian property market continues to progress at a cautiously
measured pace with gradual improvements in the Price and Supply
Index.

PropertyGuru Malaysia Property Sale Market

Index Q2 2022
Sale Price Index Sale Supply Index 208.54
210
Sale Price Index
QoQ: 1.04% YoY: 1.71%
Sale Supply Index
QoQ: 0.31% YoY: 19.10%
145

94.52

80
1

1
Q

Q
Q

Q
Q

Q
Q

Q
8

19

20

21

22
8

19

20

21
8

19

20

21
8

19

20

21
1

1
1

20
20

20

20
20

20
20
20

20

20
20

20
20

20

20
20

20

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The property market saw gradual improvements in the Malaysia Property

Market Report's (MPMR) price and supply indices in Q1 2022. This trend is
anticipated to continue throughout the year as the market readjusts to a post-
pandemic environment, with a possibility of picking up pace towards the final
quarter as consumer confidence and overall job security trickles back into the
market.

The Price Index, which tracks the movement of asking prices for properties listed
on PropertyGuru.com.my, ticked upwards by 1.04% QoQ in Q1 2022, registering
an increase of 1.71% YoY. This is an improvement on the 0.19% QoQ drop, and
0.14% YoY gain it registered in the previous quarter.

PropertyGuru Malaysia Property Market Report Q2 2022

 The Supply Index, which is based on the overall volume of listed properties,
continued its upward trend, gaining by 0.31% QoQ and 19.10% YoY in Q1 2022.
However, the numbers reflect a much slower pace of increase from the
previous quarter, when supply rose by a notable 13.54% QoQ.

The Demand Index, based on the number of listings that were viewed,
actioned upon, and enquired by property seekers on PropertyGuru.com.my,
found that overall demand dropped by 2.40% QoQ in Q1 2022. Despite a
15.43% YoY gain, the continued quarterly contraction follows on the heels of a
sharp 44.05% QoQ drop registered in Q4 2021.

The withdrawal of government initiatives such as HOC

and other financial easing policies that were
implemented during the height of the pandemic has
brought about another period of uncertainty for
property buyers, who are now adopting a “wait-and-
see” attitude until the dust settles.
Adding to this defensive stance is the ongoing political instability and persistent
uncertainty about long-term and short-term economic and health policies.
Given this, the market is expected to see more stability once the general
election (GE15) is concluded, as buyers wait to get a clearer picture.

The economy is widely expected to recover before the end of 2022, with an
expected GDP growth of 6%. Because exports account for 65% of Malaysia's
GDP, improvements in the global outlook and the resolution of the international
supply chain will have a positive external impact on Malaysia.

Another factor that will aid the overall economic climate is the reopening of
international borders. Market experts in the financial sector predict a sizeable
boost for the overall economy following a lift in cross-border travel restrictions
this year.

Key concerns remain about the rising overall cost of business – due to rising
material costs – and how this could inflate the price of residential units in the
near term.

In this current climate, sellers will have to take the initiative to incentivise buyers
with innovative packages. Discounts, freebies, and attractive financial solutions
have already proven to be a catalyst even in tough economic times under the
HOC.
PropertyGuru Malaysia Property Market Report Q2 2022
 Sale Price Index Sale Supply Index
110 220

108 195.56

106 171.11
Sale Supply Index
104 146.67
208.54

Sale Supply Index

Sale Price Index

102 122.22

100 97.78

98 73.33
Sale Price Index
96
94.52 48.89

94 24.44

92 0
1

1
Q

Q
Q

Q
Q

Q
Q

Q
18

19

20

21

22
18

19

20

21
18

19

20

21
8

19

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21
1

20
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20

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20

20

20
20

20

1.71% 19.10% 15.43%

Sale price index Sale supply index Sale demand index
increase year-on-year increase year-on-year increase year-on-year

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Residential Overhang Top 5 States with Highest

by Type 2021 Property Overhang

Selangor 6,095 units

Terrace 7,839 units
House Johor 6,089 units
Penang 5,493 units
High Rise 20,505 units
Kuala Lumpur 3,908 units

Others 8,519 units Sabah 2,933 units

Source: Property Market Status 2021 National Property Information Centre (NAPIC)

PropertyGuru Malaysia Property Market Report Q2 2022

 Malaysia Property
Rental Market Index
Rental market steadily on the rise in terms of price, as property
seekers are looking to upgrade their spaces and lifestyle needs in
connection with supply and demand.

Uncertainty in the property sale market has brought about greater

attention to the rental market, as property seekers are looking for
alternative ways to upgrade their space and lifestyle needs. This has
translated into a steady rise in rental property, in terms of price, supply
and demand.

The Rental Price Index saw an increase of 1.22% QoQ in Q1 2022,

accompanied by a 1.96% YoY rise. In tandem with this, the Rental Supply
Index also registered an increase of 1.68% QoQ and 1.15% YoY in the first
quarter of the year. This reflects an upward trend for rental property,
brought about by a notable increase in demand.

PropertyGuru Malaysia Property Rental Market

Index Q2 2022
350

296

242

188

134

80
1

1
Q

Q
Q

Q
Q

Q
Q

Q
8

19

20

21

22
8

19

20

21
8

19

20

21
8

19

20

21
1

1
1

20
20

20

20
20

20
20
20

20

20
20

20
20

20

20
20

20

The Price Index tracks The Supply Index tracks The Demand Index
median asking prices of the number of all tracks the number of
all property rental property rental listings enquiries of all property
listings on PropertyGuru on PropertyGuru rental listings on
Malaysia. Malaysia. PropertyGuru Malaysia.

Powered by PropertyGuru DataSense

PropertyGuru Malaysia Property Market Report Q2 2022

 The Rental Demand Index captures this as a 4.62% QoQ increase in
demand among home seekers in Q1 2022. From a yearly perspective, the
increase is even more pronounced, with a massive 93.27% YoY hike in rental
demand.

Affordability issues and financial insecurities in the

wake of the COVID-19 pandemic continue to weigh
heavily on the perception and the changing priorities of
home seekers, who are now gravitating heavily towards
rental properties as a solution.
With 47% of the respondents in the PropertyGuru Consumer Sentiment
Study H1 2022 identifying unstable jobs or salaries as the main deterrent to
purchasing property, economic uncertainty continues to be a major hurdle
for consumers. Similarly, those who said they could not afford the down
payment sum for a property amounted to a sizeable 41% of respondents.

Global inflationary pressure will also be playing on the mind of consumers,

who are now becoming increasingly concerned about the rising cost of
living. The removal of the loan moratorium at the end of 2021 would have
also caused a sudden jolt of insecurity among many who greatly
appreciated the financial relief.

On the flip side, the rising rental market presents an opportunity for those
on financially sound footing to invest in the country’s many unsold units at
a bargain price, to take advantage of the current upswing in rental
demand.

PropertyGuru Malaysia Property Market Report Q2 2022

 High-Rise Property Sale and
Rental Market Index
The lack of take-up for high-rise units – despite the sizeable overhang
– indicates strata home prices are still mismatched with current buyer
appetite.

PropertyGuru Malaysia Property Market Report Q2 2022

High-Rise: Sale vs Rental

Sale Rental
Sale Price Rental Price
-0.23% QoQ 0.91% QoQ
Sale Supply Rental Supply
3.25% QoQ 2.72% QoQ
Sale Demand Rental Demand
-1.14% QoQ 6.08% QoQ
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The High-Rise Sale Price Index found that prices for stratified properties fell by
0.23% QoQ in Q1 2022, while only registering a 0.51% YoY increase in the same
period. The Supply of high-rise properties, however, continued to increase by
3.25% QoQ and 18.24% YoY.

Notably, this goes against the grain of current demand, which fell by 1.14%
QoQ in Q1 2022, despite registering a gain of 29.84% YoY.

From a rental perspective, the story is slightly different. The High-Rise Rental
Price Index moved up slightly by 0.91% QoQ and inched upwards by 0.20%
YoY. Supply also increased marginally, with the High-Rise Rental Supply Index
moving up by 2.72% QoQ and just 1.82% YoY.

PropertyGuru Malaysia Property Market Report Q2 2022

 However, the current supply of high-rise properties for rent does not match
the increasing demand. High-Rise Rental Demand Index registered a 6.08%
QoQ increase and a whopping 111.23% YoY jump in the last quarter.

From a buying perspective, terraces continue to be the top choice. Given

that first-home purchasers currently make up the bulk of active buyers, it
looks like millennials are currently focusing their purchasing attention on
landed homes with more space opportunities to accommodate working
from home.

Although millennials have also expressed a desire for well-located

condominiums, the lack of take-up for high-rise units – despite the sizeable
overhang – indicates strata home prices are still mismatched with current
buyer appetite.

However, from a rental point of view, the increasing demand for high-rise
units could mean that they represent an ideal interim option for those who
have temporarily put off purchasing plans until the overall economy
improves.

In this scenario, properties that offer the added convenience of a good

central location that will help cut daily travel costs will likely attract the
strongest rental yields.

PropertyGuru Malaysia Property Market Report Q2 2022

 Landed Property Sale and
Rental Market Index
Landed homes are still the preferred buying option, but affordability
issues and the financial difficulties of would-be buyers are currently
suppressing demand.

PropertyGuru Malaysia Property Market Report Q2 2022

Landed: Sale vs Rental

Sale Rental
Sale Price Rental Price
1.10% QoQ -0.50% QoQ
Sale Supply Rental Supply
-1.54% QoQ 0.68% QoQ
Sale Demand Rental Demand
-1.96% QoQ -0.58% QoQ
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Landed property continue to be the strongest performing property type in

terms of transactions, but overall reduced demand for property purchases is
taking its toll on the segment in the short term.

The Landed Sale Price Index captured an increase of 1.10% QoQ and 3.64% YoY
in Q1 2022. Supply dropped by 1.54% QoQ in the same period but expanded by
19.77% YoY.

However, the Landed Sale Demand Index dipped by 1.96% QoQ, while it
increased by 5.21% YoY.

PropertyGuru Malaysia Property Market Report Q2 2022

 The fluctuating performance of the landed property market points to the
fact that landed homes are still the preferred buying option, but
affordability issues and the financial difficulties of would-be buyers are
currently suppressing demand.

Without financial incentives to take advantage of, many buyers feel that
prices are now beyond their means, and they will wait for a better
economic climate before revisiting purchasing plans.

With rising inflation becoming an issue, the current quarter could also see
a turnaround for property demand, as Malaysians will be looking for a
hedge against inflation. With the advantage of land value to factor in, the
rising prices of landed properties offer larger margins for capital
appreciation in the long term.

Rental values for landed properties, however, are currently on a downward

trend. The Landed Rental Price Index dipped by 0.50% QoQ but gained by
5.72% YoY in Q1 2022. On the other hand, supply moved up by 0.68% QoQ,
but dropped by a notable 14.38% YoY.

Demand also contracted by a slight 0.58% drop QoQ in the first quarter of
the year, but overall remained healthy with an increase of 39.19% YoY on
the Landed Rental Demand Index.

PropertyGuru Malaysia Property Market Report Q2 2022

 Area Focus
An integrated and self-sustainable residential hotspot with easy access
to Kuala Lumpur city, relatively new amenities and facilities, and
surrounding lush greenery.

PropertyGuru Malaysia Property Market Report Q2 2022

Bandar Puncak Alam

Price Index: 126.48
YoY | 13.97%

Supply Index: 1,389.02 Bandar

Puncak Alam
YoY | 49.67% Bandar
Saujana Utama

Total Price Index Total Supply Index Total Demand Index

+5.32% QoQ
+9.89% +32.16%
QoQ QoQ

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Despite the slow pace of improvements in the market, there are locales that
are proving to be bright spots by continuing to perform strongly against a
tough economic climate. Among them is Bandar Puncak Alam in Kuala
Selangor.

PropertyGuru Malaysia Property Market Report Q2 2022

 In Q1 2022, prices in the vicinity moved up by 5.32% QoQ and 13.97% YoY. This
is a reflection on the rising profile of the area, as demand too has expanded
by 32.16% QoQ and 29.19% YoY. As developers have been actively reacting to
the growing popularity of Bandar Puncak Alam, supply in Q1 2022 also shot
up by 9.97%, while jumping by 49.67% YoY.

The township’s potential has drawn big-ticket developers to the area, and
currently, EcoWorld is actively marketing its 1,400 acres Eco Grandeur
residential enclave, while LBS Bina Group developed the area with the LBS
Alam Perdana township. Other ongoing projects include Graham Garden,
Bayu Suria @ Bandar Puncak Alam, Puncak Bestari 2 and Alam Suria Enclave
Residence, to name a few.

Located 30 minutes from the KL City Centre via the KL-Kuala Selangor
Expressway, other major highways that connect to Bandar Puncak Alam
include the Guthrie Corridor Expressway, New Klang Valley Expressway, and
the Damansara-Shah Alam Expressway.

In addition to Hospital UiTM and the UiTM Puncak Alam university campus,
the neighbourhood’s rapidly modernising landscape includes new malls,
commercial centres, eateries, schools, and other day-to-day conveniences at
easy reach for most residential clusters in the area.

The rental index also shows strong potential for the township. While rental
asking prices contracted by 2.50% QoQ in Q1 2022, it grew by a sizeable 52%
YoY in the previous quarter. The supply of rental properties in the vicinity is
also increasing in unison with demand, moving upwards by 18.92% QoQ and
22.65% YoY.

Strong demand for rental property is expected to grow in the current

quarter, having already registered a 29.96% QoQ and 34.33% YoY increase in
Q1 2022.

Property seekers’ sentiment for more peace and quiet as well as more
surrounding greenery as expressed in the PropertyGuru Consumer Sentiment
Study H1 2022 offers insight into the blossoming demand for properties in
Bandar Puncak Alam.

Bandar Puncak Alam’s decentralised location in the outskirts of the city, while
being conveniently connected to urban centres, puts it in an ideal position to
tick many of the above-mentioned boxes.

PropertyGuru Malaysia Property Market Report Q2 2022

 Conclusion
Despite clear signs of improvements in the market and an expected
recovery in the second half of the year, homebuyers continue to be
bogged down by factors such as affordability, inability to secure a loan,
job security and overall economic stability. As such, consumer sentiments
will likely only improve in tandem with an improved economic
environment as the year progresses.

In the interim, buyers continue to hope for more government initiatives

that will result in better financial security during this period. It will take
incentives like those offered under the HOC to keep property demand
afloat until the economy fully recovers. Without this, developers who are
already facing the pressure of rising operational costs will have to be
innovative and inventive to revive buyer attention.

Meanwhile, the rental market will likely continue to heat up in the coming
months, as a direct result of subdued buyer appetite. This will be driven by
the existing desire among home seekers to upgrade their lifestyle and
living environment following their experience with pandemic-related
restrictions.

The “wait-and-see” approach that buyers are taking is

further exacerbated by the ongoing political instability and
uncertainty on economic and health policies, which further
dampens the market. While we await improvement on these
external factors, sellers will have to take the initiative to
incentivise buyers with attractive packages to spur the
market.

Shylendra Nathan
Country Manager,
PropertyGuru Malaysia

PropertyGuru Malaysia Property Market Report Q2 2022

 About This Report
Buying a home is one of the most difficult decisions of our lives. It is also likely to be the
most expensive decision. When committing to a home purchase, it is important to be
equipped with relevant and sufficient information so that the decision can be made
confidently.

PropertyGuru wants to simplify this process for property seekers, including first-time
homebuyers and existing homeowners who might be looking into buying their second or
third properties. In that vein, we created this report to help Malaysians understand the
movement of the property market better, so that property buyers can gain greater
insight on current price trends that are in line with market sentiments, and to try to time
their property purchases better.

As a leader in the real estate market in Malaysia, PropertyGuru processes a vast

amount of real estate data daily, providing us with the necessary data to crunch, and
deliver in-depth insights to all Malaysian home seekers.

In this report, we look at pricing, demand and supply indices of residential properties in
Malaysia, in various locations, and across different property types, to provide a
comprehensive overview of property market dynamics across the city-state.

Methodology
Using a range of statistical techniques, the data from over 500,000 listings on
PropertyGuru Malaysia is aggregated and indexed for the quarterly Malaysia
Property Market Report, powered by PropertyGuru DataSense.  The report presents
three main indices – the Price Index, Supply Index, and Demand Index, for both the
sales and rental markets. This offers meaningful insights on the Malaysia residential
property market price fluctuations and supply-demand trends.

The Price Index is indicative of sellers' optimism, based on the prices on PropertyGuru
Malaysia that developers and homeowners feel they can get for their respective
properties. This is complemented by the Supply Index, which provides a view on supply
volumes in the market through the number of new launch and resale property listings on
PropertyGuru Malaysia. The responsiveness of home buyers and tenants to the Price
and Supply Indices is shown in the Demand Index, which represents the
proportion of interested property seekers for homes listed on the platform.

For the Property Market Report Q2 2022, the Price, Supply and Demand Indices will use Q1
2018 as the base quarter. Prior to that, the PropertyGuru Malaysia Property Market Index
was computed using a different methodology, using Q4 2016 as the base quarter.
Powered by PropertyGuru DataSense, the Malaysia Property Market Report is further
enriched by utilising historical property transaction data.

PropertyGuru Malaysia Property Market Report Q2 2022

PropertyGuru Group
REG PropertyGuruGroup.com | AsiaPropertyAwards.com | AsiaRealEstateSummit.com
MY PropertyGuru.com.my | iProperty.com.my
SG PropertyGuru.com.sg | CommercialGuru.com.sg
ID Rumah.com | RumahDijual.com
TH DDproperty.com | thinkofliving.com
VN Batdongsan.com.vn

Contact
For media or press inquiries, or to understand more about the Malaysia
Property Market Report, contact mediaenquiry_my@propertyguru.com.my

Disclaimer
This publication has been prepared for general guidance on matters of interest only, and
does not constitute professional advice. You should not act upon the information contained in
this publication without obtaining specific professional advice. No representation or warranty
(express or implied) is given as to the accuracy or completeness of the information contained
in this publication, and, to the extent permitted by law, PropertyGuru Group does not accept
or assume any liability, responsibility or duty of care for any consequences of you or anyone
else acting, or refraining to act, in reliance on the information contained in this publication or
for any decision based on it.

About PropertyGuru DataSense

PropertyGuru DataSense is the leading  data technology partner in the property market –
providing big data, analytics and solutions to help our partners utilise actionable insights and
technology to achieve their business goals.

About PropertyGuru Malaysia

PropertyGuru is an online property website in Malaysia, with more than 5 million
monthly visits* and over 500,000 home choices as recognised by the Malaysia Book of
Records. Voted “Top Brand in Online Property Search" by property seekers,
PropertyGuru is the most preferred destination for Malaysians to find and own their
dream home. The company is part of PropertyGuru Group, Southeast Asia’s leading
property technology company.

For more information, please visit

www.PropertyGuru.com.my and www.PropertyGuruGroup.com, or our social media on
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