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Malaysians view real estate as a hedge against inflation: PropertyGuru

KUALA LUMPUR: Malaysians are viewing real estate as a hedge against inflation, with 53 per cent of homeowners looking to buy an additional property in the next one year while keeping their current property stating that the purchase is for investment.

This was shown by PropertyGuru Malaysia's biannual Consumer Sentiment Study for the first half of 2022.

PropertyGuru.com.my and iProperty.com.my Malaysia country manager Shylendra Nathan said with the emergence of inflation right as the economy was starting to recover from the pandemic, more Malaysians were turning to the housing market which presented a more attractive investment option, serving as a good alternative to the more uncertain stock market.

The study also found that more than half of the total respondents (55 per cent) expect property prices to increase post-Covid-19.

"Hence, it is no surprise that those who have the means to are considering purchasing an investment property, especially in this current low interest rate environment," he said in a statement today.

The study said in the last two years, various government initiatives such as the Home Ownership Campaign (HOC) and the loan moratorium had benefited home seeker and current homeowners alike.

It said the Real Estate and Housing Developers Association had revealed that the HOC contributed to 73,503 residential sales worth a total of RM47.38 billion after discounts, between June 2020 and September 2021.

Meanwhile, 46 per cent of the moratorium participants polled in the study found the financial aid was helpful in managing their cost of living, and 26 per cent stated they managed to rebuild their savings due to the moratorium.

However, Shylendra said only 12 per cent of Malaysians perceived that the government was doing enough to make housing affordable in the country, the lowest score recorded by the study since 2017.

"As Malaysians are just starting to get back on their feet and slowly rebuilding buyer confidence after persevering through the pandemic, more incentives are needed to help spur the property market," he said.

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