Kuala Lumpur continues to dominate Malaysia’s real estate landscape as the most expensive market, with subsale homes reaching an average price of RM801,557 in the first quarter of 2024. This figure notably surpasses the average price of new homes, which stands at RM708,462. As investors and homebuyers navigate this dynamic market, understanding these trends is crucial for making informed decisions.
Following closely behind Kuala Lumpur, the states of Sarawak, Sabah, and Johor also showed significant price strength in the subsale home market according to Juwai IQI’s first-quarter 2024 Residential Sales Market Report. This extensive report draws its conclusions from an analysis of over 70,000 residential sales in Malaysia, covering both subsale and new project markets since 2018.
In contrast, Sabah, Johor, and Kedah topped the list for the most expensive states for new home sales. These varying regional prices highlight diverse investment opportunities and challenges across the country.
On the more affordable end of the spectrum, Terengganu offered the lowest average subsale home prices at RM293,714, with Perak, Kedah, and Pahang also presenting more budget-friendly options. Similarly, Melaka was the least expensive state for new homes in the same quarter, boasting an average price of RM305,463, with Pahang, Perak, and Kelantan following as economical choices for new homeowners.
Market Dynamics and Homebuyer Preferences
According to Kashif from Juwai IQI, the market’s current state offers a well-balanced array of options for potential buyers. “In the subsale market, nearly half of the transactions were priced at RM500,000 or below, which is encouraging for medium- and low-income earners seeking quality housing,” Kashif explained.
This balance is critical in maintaining a healthy real estate market that provides opportunities at all economic levels. Moreover, with about half of the new unit purchases also falling under RM500,000, it is evident that affordability remains a priority for many Malaysians.
Financial Insights for Potential Homebuyers
The financial aspect of home buying, particularly for new homes, was also highlighted in the report. “The average interest rate for a new housing loan stood at 4.2 percent at year’s end,” Kashif noted, detailing further that a typical monthly mortgage for an RM300,000 home, after a RM30,000 down payment, would be about RM1,228. This cost is significantly lower than the average rental price of RM1,975, presenting a compelling case for buying over renting.
“The savings of RM747 per month can be a game-changer for many households, enhancing their ability to secure financial stability and independence,” Kashif added. This difference in monthly outlays illustrates the broader financial benefits of home ownership under current economic conditions.
The Path to Financial Security
Owning a home in Malaysia continues to be viewed as a direct path to financial security. Despite the fluctuations in the economy and the property market, the fundamental value of home ownership remains strong. “We continue to believe that owning your own home is the shortest route to financial security and independence for most Malaysians,” Kashif concluded.
As the property market in Kuala Lumpur and other states evolves, staying informed about these trends will help both current and prospective homeowners make the best decisions for their financial futures. Whether you’re looking to invest in high-end properties or find an affordable new home, the current landscape offers diverse opportunities tailored to meet various needs and preferences.
