KUALA LUMPUR: Kuala Lumpur maintained its position as the country's most expensive property market, with an average subsale home price of RM801,557 during the first quarter of 2024 (Q12024), surpassing the average price of new homes at RM708,462.
Following Kuala Lumpur, the next three states with the highest subsale home prices in Q12024 were Sarawak, Sabah, and Johor, according to Juwai IQI's first-quarter 2024 Residential Sales Market Report for Malaysia.
The report is based on the analysis of more than 70,000 residential sales in the subsale and new project markets across Malaysia since 2018.
Sabah, Johor, and Kedah were the top three most expensive states for new home sales in the first quarter of 2024.
Terengganu boasts the lowest average subsale home price at RM293,714, followed by Perak, Kedah, and Pahang.
In terms of new units, Melaka emerged as the least expensive state in Q12024, with an average price of RM305,463.
Pahang, Perak, and Kelantan followed suit as the next most affordable states for new unit purchases.
Kashif noted that most transactions in these states occurred within the lower price ranges.
About half of new unit buyers spent RM500,000 or less in Q12024, while only about one-quarter paid more than RM750,000 for their new unit.
"In the subsale market, you see a similar distribution, with nearly half of buyers spending RM500,000 or below. It is good news that affordable home buyers can find appealing homes to buy.
"That means the market is supplying an abundance of housing for medium- and low-income earners. The market is well balanced, with ample supply catering to buyers at all price points," he said.
Kashif anticipates that new homebuyers will continue to prioritise affordable housing options.
"The average interest rate for a new housing loan was 4.2 per cent at the end of the year, according to Bank Negara. We calculated how much a buyer of an RM300,000 home would have to pay every
month.
"If a buyer puts down RM30,000 on a RM300,000 home, their monthly mortgage expense would be RM1,228 per month. That makes buying an affordable home significantly cheaper than the average rental, which is RM1,975," Kashif said.
Kashif said that buying an affordable home would save a homebuyer RM747 per month compared to paying the average rent.
"The data on monthly expenses can help buyers understand their financial position when considering the purchase of a home. You need to know your budget when assessing long-term affordability and payoff amidst fluctuating economic conditions.
"We continue to believe that owning your own home is the shortest route to financial security and independence for most Malaysians," he said.