Properties in the cities are expected to be back in favour globally over the next 12 months, according to independent real estate consultancy Knight Frank.
Its Global Buyer Survey released today, which represents the views of over 900 Knight Frank clients across 49 markets, revealed that out of those respondents who are more inclined to move in the next 12 months, 38 per cent of them are looking at city locations with 33 per cent opting for the suburbs.
The survey also analyses the impact that Covid-19 has had on residential buyers' attitudes to purchasing homes around the world.
Knight Frank Malaysia deputy managing director Keith Ooi said for the Malaysia market, although there was an improvement in transactional activity in the first quarter of 2021, the average house price for Kuala Lumpur, a buyer's market, was lower by 3.1 per cent for the year.
"This is likely attributed to weaker demand amid rising inventory as potential buyers and investors adopt the 'wait and see' approach during the pandemic period.
"In contrast, the average house price for Penang remained resilient with 0.2 per cent growth supported by initiatives under the various stimulus packages and the National/State Home Ownership Campaigns," he said in a statement today.
Moving forward, Ooi said the overall housing market is expected to gradually recover throughout 2022 although prices, in general, are expected to remain flattish.
The survey also showed that globally, 19 per cent of respondents have moved house since the start of the pandemic, this rises to 25 per cent in Australasia and North America.
It also highlighted that of the non-movers, 20 per cent are more inclined to move in 2021 as the pandemic continues.
Besides that, 46 per cent of respondents are more likely to buy a detached home or villa but demand for apartments has increased to 19 per cent, up from 12 per cent in 2020.
"This reflects an increase in demand for both larger, more spacious apartments, and pieds-a-terre (small living unit) in city centres," it said.
Additionally, the survey stated that the appetite for ski homes has increased from 11 per cent in 2020 to 18 per cent in 2021, with demand from North American and Asian buyers above the global average.
The above coincides with Knight Frank's Prime Global Forecast which expects global house prices on average likely to increase by four per cent in 2021.
Over two-thirds of people expect the value of their current home to increase in the next year with most expecting a rise of between one per cent and nine per cent over the 12 months, it said. - Bernama