Economic uncertainty following the endemic's overall recovery has caused many prospective homebuyers to postpone their buying ambitions, while many others have voiced concerns about affordability, according to PropertyGuru Malaysia.
Given this, the firm suggested that Budget 2023 work toward lowering barriers to homeownership for low- to middle-income individuals.
Concerns about affordability are still present, as 51 per cent of respondents to PropertyGuru's Consumer Sentiment Study H2 2022 (CSS H2 2022) said they couldn't buy a property without government support, while 69 per cent said they would buy a home if the Home Ownership Campaign (HOC) was relaunched.
"Amid affordability issues, the HOC has been a great help for many first-time homebuyers and has successfully encouraged activity in a slowed property market. On top of its continuation, we also see that the rakyat may also benefit from the continuation of HOC extending its terms to the secondary market as well. This would help to create demand and further encourage homeownership, providing more options and price points for potential homebuyers if sub-sale properties were included.
"As part of this, we also hope that the government can consider reducing or removing the stamp duty for residential properties of RM500,000 and below for all Malaysians, to further boost the market," said the firm.
PropertyGuru also highlighted that property overhang issues continue to be a concern in Malaysia.
A recent study by Malaysian Industrial Development Finance Berhad (MIDF) showed that residential overhang units increased to 35,592 units in the first quarter of 2022 as compared to 27,468 units in the first quarter of 2021.
According to PropertyGuru Malaysia, now is an ideal opportunity for the government to look into giving additional housing plans with given subsidies for each home sold in order to address the problem of property overhang and further foster an inclusive real estate market.
This can be achieved by providing developers with an upfront subsidy that includes purchasers' deposit costs and any qualifying payment amount required to lower the monthly repayments for homebuyers, it said, adding that this will encourage them to resume their postponed homeownership ambitions.
While Budget 2023 should aid in easing the difficulties currently faced by Malaysians and the real estate industry, PropertyGuru Malaysia said there should also be an emphasis on the ongoing environmental problems, preparation for natural disasters, and the equally important long-term agenda of promoting sustainable urban living.
Severe floods around the country during the post-pandemic recovery period had a detrimental effect on the living conditions, savings, and livelihoods of thousands of Malaysians.
The Department of Statistics Malaysia (DOSM) estimates that the flooding caused losses of up to RM6.1 billion, with RM1.6 billion in home damages.
"These events have highlighted a new factor of consideration among Malaysian homebuyers, who, according to the CSS H2 2022, are now worried about how natural disasters and environmental issues will affect their homes in the future. Ninety-two per cent of the respondents in the study highlighted flooding as their main concern, while 83 per cent marked landslides as a particular concern.
"We look forward to the announcement of Budget 2023, which will take place on 7 October, and hope that these factors will be taken into consideration not only for the property sector but for the benefit of Malaysians and its future generations," the firm said.