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KUALA LUMPUR, Sept 24 — The ongoing oversupply of residential properties in Malaysia is seeing projects in the primary market losing their lustre, according to the PropertyGuru Consumer Sentiment Survey for the first half (H1) of this year.
PropertyGuru said while more than half of the respondents intended to purchase a property in the next six months, the report highlighted a year-on-year drop in exclusive interest in the primary market from 53 per cent in H1 2018 to just 37 per cent in the first half of this year.
“This was accompanied by a rise in overall interest in subsale properties from 47 to 62 per cent of respondents over the same timeframe.
“This figure includes purchasers interested in both secondary and primary market properties, which comprised 48 per cent of respondents in H1 2019,” it said in a statement today.
The primary market consists of new properties, which include new launches and ongoing projects from developers.
On the other hand, the secondary market is made up of secondary or sub-sale properties, previously owned houses in matured locations and established residential areas.
PropertyGuru Malaysia country manager Sheldon Fernandez said Malaysians are becoming more flexible in terms of the kind of properties they are looking for.
“Just a year ago, new launches were the clear favourite, accounting for the majority of interest, with just 14 per cent of home seekers willing to consider the secondary market as well.
“Today, 48 per cent of Malaysians are looking for both new and subsale properties, with 14 per cent exclusively targeting properties in the secondary market.
“This may underscore the growing disparity between new project launches and actual demand, whether in terms of pricing, location or other considerations,” he said.
While consumer preferences may have shifted from the primary to the secondary market, he said purchasing patterns remained steady, with established suburbs and satellite townships surrounding city centres continuing to account for the majority of demand.
“We look into two areas of interest: Current residence and intention to purchase. In both respects, the Klang Valley and its associated neighbourhoods ranked at the top of the list for Consumer Sentiment Survey respondents,” he added. — Bernama