A total of 3,459 people responded to the online survey on iproperty.com.my from 5th December 2011 to 19th January 2012. The results showed that 62.3% of survey respondents were keen on purchasing property in the next 6 to 12 months, with 71.3% stating that they had a budget under RM 500,000. Interestingly as well, 28% of respondents wished to purchase property as investment for resale, more than in other survey respondents in the other regions. The low barriers to property ownership and the healthy property price growth in the country, makes Malaysia an attractive country for not just locals but also foreigners to invest in. This can be attributed to several factors such as low mortgage rates, financing of up to 100%, stamp duty exemptions, long repayment periods, up to 30 years, or until age 75, which makes homeownership for Malaysians easy. The most important issue for concern in the Malaysian property market was that of rising house prices. However, a significant number of people surveyed also expressed high concern about home financing policies and interest rates, as well as errant developers and building quality.

1. ASIA PROPERTY MARKET SENTIMENT
REPORT 2012
Presented by Shaun Di Gregorio
CEO, iProperty Group
20th February 2012

2. Survey Methodology
Objective To examine consumer sentiments in the
four key markets we serve – Malaysia,
Hong Kong, Indonesia and Singapore.
To provide valuable insights to help
consumers gauge the sentiments of the
property market
Duration 29th November 2011 – 17th January 2012
Sample Size 8,499 survey respondents in total
3,349 survey respondents in Malaysia
1,614 survey respondents in Singapore
2,372 survey respondents in Indonesia
1,074 survey respondents in Hong Kong
Research Instrument Online survey

3. THE FINDINGS

4. The Findings - Demographics
 The findings show that males were more keen in the property market
compared to females.
 The 31-35 age group was the largest among survey respondents in
Indonesia and Malaysia.
 The 30-39 age group was the largest among survey respondents in Hong
Kong, while the 41-50 age group was the largest among Singaporean
survey respondents.
 Respondents were made up largely of executive/managerial and
professional occupations, mostly with an annual household income
above the national average.

5. THE MALAYSIAN FRONT – A BUYER
FRIENDLY ENVIRONMENT

6. Malaysia – A Buyer Friendly Environment
Just over half (53.4%) of people answering the survey reported an annual
household income of MYR 80,000 or less and over 46.6% earning above MYR
80,000.

7. Malaysia – A Buyer Friendly Environment
35.7% considered themselves Property Buyers, while 26.2% identified
themselves as Property Owners. Another 19.5% were investors. This can be
partly explained by the low barriers to property ownership and the healthy
property price growth in the country.
Description of Survey Respondents
18.60%
35.70% Property Buyers
19.50% Property Owners
Investors
26.20%
Others

8. Malaysia – A Buyer Friendly Environment
A surprising 41.4% owned two or more properties, a higher proportion than
in any other country.

9. Malaysia – A Buyer Friendly Environment
With 62.3% of survey respondents intending to buy property within the year, 71.3%
of had a budget under MYR 500,000. Landed property was the most popular type of
property, drawing the interest of 74.5% of survey respondents. Private condominiums
or service apartments drew the interest of 60.4%.

10. Malaysia – A Buyer Friendly Environment
Most Popular Areas in Malaysia in Dec 2011
On the iProperty.com
Malaysia website, it can
be seen that the top 4
popular search areas in
the Klang Valley were
Bangsar, Puchong,
Cheras and Petaling Jaya.

11. CONSUMERS SENTIMENTS – POSITIVE
ON THE ECONOMY, CONCERNED OVER
RISING HOUSE PRICES.

12. Consumer Sentiments on the Property Market
The most important issue for concern in the Malaysian property market was that of
rising house prices. However, a significant number of people surveyed also expressed
high concern about home financing policies and interest rates, as well as errant
developers and build quality.

13. Consumer Sentiments on the Property Market
59.5% considered the Malaysian property market to be doing quite well, despite
the threat of a global recession.
Interestingly, 58.6% believed that a property bubble existed in the Malaysian
property market.

14. Consumer Sentiments on the Property Market
Respondents were almost evenly divided, when asked what housing policies the
government should focus on

15. THOUGHTS ON THE MRT PROJECT

16. Malaysia – Thoughts on the MRT Project
An overwhelming majority 89.8% expected property prices to rise in
selected locations as a result of this project

17. THOUGHTS ON THE BUDGET 2012

18. Malaysia – Thoughts on BUDGET 2012
In November 2011, Bank
Negara Malaysia imposed
a Loan-to-Value ratio of
70% for people buying a
third property starting in
2012.
60.3% expected this
measure will moderate
speculative activity in the
market.

19. Malaysia – Thoughts on BUDGET 2012
With the increase in the Real Property Gains Tax to 10% for the first two years,
5% in the third through the fifth year of disposal, 47.7% expected that it will
also discourage speculation.

20. Malaysia – Thoughts on BUDGET 2012
62.1% were positive than negative (33.3%) about whether the My First Home
Scheme, designed to assist lower income private sector workers in obtaining
housing loans, would help house buyers to acquire their first home.

21. MALAYSIANS AND THE OVERSEAS
MARKET

22. Malaysians and the Overseas market
17.9% of Malaysians were interested in investing in overseas property with interest
in Australia, Singapore and the United Kingdom. Nearly half cited migration or
retirement plans as the reason for buying overseas property.
However, 42.2% of
Singaporean survey
respondents showed
interest in overseas
property, a
significantly higher
percentage than in any
other country
surveyed.

23. Malaysians and the Overseas market
Malaysians were not in a
rush to purchase property
overseas. 71.7% of
respondents did not plan to
buy for at least another one
year. In Indonesia, survey
respondents who planned to
buy overseas property were
the most likely to wait the
longest (2 or more years)
compared to the other three
countries surveyed

24. CONCLUSION

25. Conclusion
 Although recent measures have been taken by Bank
Negara and the Inland Revenue Board to discourage
speculation, the Malaysian property market
continues to be friendly for property buyers.
Malaysian survey respondents are upbeat about the
property market but at the same time wary of a
possible property bubble.