Forty-eight per cent of Malaysians expect home prices to increase in 2021, while two out of every five expect to purchase a home this year, according to a new survey of Malaysian consumers by Juwai IQI this month.
Elaborating on the survey results, 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 per cent believe home prices will go up this year, and only 34 per cent think they will go down. The number of people who think home prices will go down ‘a lot’ is vanishingly small, at just 3 per cent. That compares to 12 per cent who believe the opposite, that home prices will climb ‘a lot.’
“The survey results show that some groups are much more positive than others about real estate prices. Those who purchase in 2021 will benefit from price gains. Owning real estate is a key to building wealth, especially in a period of rapid growth such as we foresee between today and 2025. Those who don’t purchase will miss out on the bull market we expect to come.
Some States More Optimistic than Others
“The most optimistic state is Sarawak. Sixty-two per cent of Sarawak residents predict prices will rise in 2021, which is 14 percentage points more than the national number. Only 24 per cent in Sarawak believe prices will fall this year. The most pessimistic state is Penang. In Penang, 41 per cent of people think prices will fall this year, compared to 38 per cent who believe prices will climb.
Penang has the largest share of residents who believe prices will remain where they are today, at 22 per cent.
Battle of Generations: Youth See Bigger Gains than Elders
“In general, the youth are more optimistic about home prices than their elders. Here is a definition of the generations. Members of Generation Z are aged 9 to 24, Millennials are also called Gen Y and are 24 to 39, Gen X are 41 to 56, and Boomers are 57 to 74.
“Generation Z is the most optimistic generation, with 68 per cent of these young adults believing that prices will rise this year, compared to just 21 per cent who think they will fall. The most pessimistic generations are also the oldest. Forty-three per cent of the Baby Boomers and older generations believe the prices will fall this year. That’s slightly more than the 38 per cent of the oldest generations who think prices will rise.
“Millennials, who are also known as Gen Y, are mostly positive. Fifty per cent of Millennials predict prices will climb in 2021, compared to just 31 per cent who think they will fall. Gen X are also more positive than negative, with 47 per cent projecting price increases and 35 per cent projecting falling prices.
Battle of the Sexes: Men More Positive, Women More Cautious
“There is a real battle of the sexes because men today are even more optimistic about home prices than women. Half of men forecast that prices will rise, but just 46 per cent of women feel the same. Both men and women are more positive than negative, with only 31 per cent of men and 36 per cent of women projecting falling home prices.
Two in Five Malaysians Will Buy a Home in 2021
“When asked if they intend to purchase a home this year, close to half of Malaysians said that they do. Forty per cent of all respondents expect to buy in 2021, while 42 per cent do not. Eighteen per cent are undecided.
“Sabah has the most residents planning to buy a property in 2021, with 47 per cent of Sabahans saying they will. People in Kuala Lumpur and Selangor are least likely to purchase a home this year, but even so, in both states, more than one-third of residents say they plan to.
“The youngest Malaysians are the most positive about the property market and the most likely to be purchasing homes this year. Fifty-four per cent of Gen Z respondents said they expect to buy a home this year, as did 46 per cent of Millennials. While 33 per cent of Boomers and 31 per cent of Gen X also expect to buy homes this year, that is a lower share than their younger brethren.
“Male respondents are also more likely to buy a home this year, with 44 per cent of men committed to doing so, nearly one-third more than the 35 per cent of women who say the same.
“There are also slightly more women uncertain about whether they will purchase a home this year. Nineteen per cent of women are not sure, compared to 17 per cent of men.”
