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Property Market Report - Q1FY2023
Property Market Report - Q1FY2023
3 Malaysia Property
Sale Market Index
Most Viewed
Condominium Projects
4 Malaysia Property
Rental Market Index
Top 10 Most View
Non-Landed Rental Properties
5 Conclusion
7 About PropertyGuru
The economy is also supported by robust domestic demand and investment. According to Bank
Negara, the economy is expected to grow at a moderate pace between 4% and 5% in 2023, and
is unlikely to experience a recession. Growing domestic demand and an increase in electrical
and electronics, and the tourism sector job openings will likely help offset the slower external
demand.
Despite the strong rebound of the economy, home buyers saw their wallets shrink as headline
inflation hit 4.5% in Q3 2022, and the Overnight Policy Rate (OPR) reaching 2.75% from its
historic low of 1.75% since May 2022. Consequently, property demand eased in the fourth
quarter, partly due to the election and year-end travel.
The Sale Demand Index went down by 14.8% QoQ, as the total cost of acquiring homes became
more expensive. However, sellers were still setting prices at a higher level, with the Sale Price
Index increasing by 1.5% QoQ. This contributed to the price gap between buyers and sellers,
which is likely to widen, leading to slower sales. While some buyers shifted to renting in the
third quarter, this shift eased as the demand for rentals decreased by 4.0% QoQ in Q4 2022. The
slight decrease in rental demand may have been due to higher rents in the market, with the
Rental Price Index increasing by 2.8% in Q4 2022, resulting in an 11.5% increase YoY.
Hence, the market continues to face an uncertain external environment, with external pressure
on interest rates to rise higher, at least in the first half of 2023. Despite the pessimism of the
external environment, the market may see greater optimism following the formation of the new
government. The stock market and ringgit value surged after the Prime Minister was
announced. Furthermore, the relaxation of the COVID-19 measures in China would boost the
economy in the second half of the year through increase tourist arrivals and fewer supply chain
disruptions.
Author:
Dr. Lee Nai Jia, PhD
Head of Real Estate Intelligence,
PropertyGuru Group
The General Election, higher interest rates, and overseas travelling also caused the Sale
Demand Index, which tracks the number of enquiries for homes listed on PropertyGuru.com.my,
to decline by 14.8% QoQ or 17.9% YoY. That said, the significant decline is a one-off, and we
may see demand stabilising by Q2 2023.
The top three projects with the most views were from Johor. The most viewed project was The
Astaka @ 1 Bukit Senyum. This freehold project was developed and completed in 2017 and is
well-connected to surrounding areas. In Kuala Lumpur, EdgeWood Residences had the most
views. The project is located in Setapak and has a multitude of amenities and facilities. It is
easily accessible via highways and Light Rapid Transit.
Topping the list in Penang is Queens Residence @ Queens Waterfront. This exclusive freehold
development is located in Bayan Lepas, Penang. It is a mixed-use development that
comprises Queens Residence, Queens Sports Centre, and an international school.
The most viewed landed project in the third quarter was Leisure Farm in Johor. Country Heights
Kajang in Selangor was ranked second, followed by Damansara Heights in Kuala Lumpur.
Leisure Farm
Johor
With the increase in listing prices becoming ever more expensive for properties located within
the Klang Valley and the central business district, prospective buyers have now set their sights
towards the fringe area due to the larger and more affordable housing options that are
connected and served by Light Rail Transit or expressways.
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For the whole of 2022, the rise in asking prices and interest rate hikes have pushed some buyers,
especially those who are equity constrained, to the rental market. For the whole of 2022, the
Rental Demand Index went up by 32.9%, and the rental price index rose by 11.5%. The supply of
rental listings on the PropertyGuru.com.my website also went up by 19.6%, as landlords were
seeking alternative income sources to offset inflation.
However, the Rental Demand Index eased in Q4 2022 due to the year-end holiday season. The
decrease could be a dip and it is likely to rebound after the Lunar New Year.
The Rental Price index edged up by 2.8% QoQ in Q4 2022, as owners sought to offset the price
of inflation and the rising interest rates. Unless the Malaysian economy experiences a
significantly slowdown, asking rents are likely to remain stable or even appreciate in 2023.
The Sale Demand Index could show a slow down in the first half of the year. The Price Demand
Index is expected to remain higher because of the tight labour market. The rental market is likely
to remain active, especially after Malaysia waived industry quotas to speed up the hiring of
foreign workers unless the private sector slows down employment and scales down
considerably in view of the uncertain outlook. Employers no longer have to comply with quota
limits before hiring workers from 15 countries.
"Demand for homes is likely to be tempered in the first half of 2023 due to
the rising interest rates, as transaction volume will likely ease further due
to the widening price gap. That said, second half of the year is likely to be
more promising as the Chinese economy opens up."
[Market] [Country] Property Market Index Q4 2021 PropertyGuru Malaysia Property Market Report Q1 2023
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
property data daily and delivers in-depth insights to all 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 country.
Methodology
Using a range of statistical techniques, the data from private home listings on PropertyGuru
Malaysia is aggregated and indexed for the quarterly Malaysia Property Market Report. The
report presents three main indices – the Price Index, Supply Index, and Demand Index, for both
the sales and rental markets. This enables us to draw meaningful insights on Malaysia's
residential property market, based on the 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 that they can get for their respective properties. This is
complemented by the Supply Index, which provides a view of supply volumes in the market
through the number of new launches and resale property listings on the platform. 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.
From the Malaysia Property Market Report Q1 2022 onwards, 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, with Q4 2016 as the base quarter.
Powered by DataSense, the Malaysia Property Market Report is further enriched by utilising
historical property transaction data.
PropertyGuru.com.my is Malaysia’s leading property marketplace and has been guiding Malaysians in navigating their
home-ownership journey since 2011. The company provides easy-to-use, property market data and actionable insights
such as Property Guides, Property Market Reports and Home Loan Calculator, which enable property seekers to make
confident property decisions wherever they are in their property journey. PropertyGuru Malaysia offers end-to-end
solutions for Malaysian property agents (AgentNet) and developers to help achieve their business goals. These include, a
high-quality developer sales enablement platform, FastKey; and a host of other property offerings including Awards,
events and publications across Asia. The company is part of PropertyGuru Group (NYSE: PGRU), 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
Facebook, Instagram and LinkedIn.
PropertyGuru Group
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SG PropertyGuru.com.sg | CommercialGuru.com.sg | PropertyGuruFinance.com.sg | Sendhelper.com
MY PropertyGuru.com.my | iProperty.com.my
TH DDproperty.com | ThinkOfLiving.com
ID Rumah.com
VN Batdongsan.com.vn | Dothi.net
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.