Survey findings by the iProperty Group, Asia’s No.1 network of property portals, have revealed that affordability and rising house prices continue to remain a major concern among Malaysians.

1. Press Release For Immediate Release
SURVEY BY THE IPROPERTY GROUP FINDS THAT AFFORDABLE HOUSING CONTINUES
TO REMAIN A CONCERN AMONGST MALAYSIANS
Kuala Lumpur, 5th February 2013 – Survey findings by the iProperty Group, Asia’s No.1 network of
property portals, have revealed that affordability and rising house prices continue to remain a major
concern among Malaysians.
The iProperty.com Asia Property Market Sentiment Survey (H1) 2013, conducted on the iProperty
Group’s leading websites in Malaysia (iproperty.com.my), Indonesia (Rumah123.com and
rumahdanproperti.com), Hong Kong (GoHome.com.hk) and Singapore (iproperty.com.sg), is the first
cross-market online property survey of its kind.
Key Findings in Malaysia:
- Malaysians reported the highest annual household income compared to respondents in
Indonesia, Hong Kong and Singapore
- Malaysians continue to own significantly more than one property (41%) compared to
respondents in Indonesia (16%), Hong Kong (18%) and Singapore (22%)
- Location and Price remains the two most important factors of consideration in determining the
purchase of property
- Similar to previous survey findings, affordability and rising house prices continue to remain the
biggest concern among respondents (70%). Respondents think that property prices will increase
across all dwelling types with landed property becoming less affordable in the first half of 2013
- 65% are not convinced that 30 abandoned housing projects in Malaysia will be revived, despite
reports that the Housing and Local Government Ministry succeeded in reaching its Key
Performance Indicator by reviving 32 abandoned housing projects in 2012
- 47% feel that more should be done to protect property buyers in the country
- 65% do not think that the allocation of MYR1.9 million to build 123,000 affordable housing units
in strategic locations in 2013 will be effective in meeting the rising housing demand for low-to
middle-income earners
- Respondents were largely split between wanting the government to do more (32%) and
believing that the recent increase in income limit for My First Home Scheme will do enough to
assist more people in their homeownership journey (32%)

2. - 45% do not think that that the increase in the Real Property Gains Tax from 10% to 15% for
properties sold within the first 2 years, while properties sold from the third to fifth year will be
increased from 5% to 10%, will curb speculation
- Only 19% of respondents want to invest in property overseas with the top three destinations
being Australia, Singapore and the United Kingdom
Shedding further light on the iProperty.com Asia Property Market Sentiment (H1) 2013 survey findings,
iProperty Group’s Chief Executive Officer, Shaun Di Gregorio, said that despite the residential property
market in Malaysia being buoyant in the past two years, in 2013, property buyers are treading carefully
while adopting a wait-and-observe stance.
“Malaysia’s economy is projected to grow at a healthy pace of between 4.5% and 5% in 2012 and at the
same time, a number of key infrastructure projects are being implemented under the Economic
Transformation Programme. However, with the prolonged global economic uncertainties, more
stringent vetting process adopted by banks and the implementation of the various measures by the
government to avoid an asset bubble, local and foreign investors are being cautious in their approach to
purchase and invest in property,” said Di Gregorio.
The Findings
The survey polled over 8,000 respondents from Malaysia and the majority of respondents were aged
between 26 to 35 years old and 57% had an annual household income between MYR 30,001 – MYR
80,000.
When it came to purchasing property, 79% indicated that they wanted to purchase property within 6
months to 2 years. 34% indicated that their budget is MYR350,001 to MYR500,000 followed by 32% who
would spend up to MYR350,000 for a property. Purchasing a home of more than MYR400,000, based on
a 30-year repayment period, in a matured or burgeoning areas may not be a viable option for
respondents with an annual household income of less than MYR60,000.
The findings have revealed that landed property continues to be the most popular choice among
respondents. High-rise living is also gaining fast popularity possibly due to a greater appreciation for
condo facilities and security features. With the stock market being too volatile, unit trusts returns are
low and bond investments being too complicated, it was not surprising to see that 33% of respondents
viewing property as a long term investment while 28% wants to purchase property to provide a better
environment for their family.
Half of Malaysian’s surveyed answered that property prices are too highly priced, while 16% answered
that they cannot find a suitable property.
“This could be because of the budget that these respondents have, finding a home in a location that
they desire is not feasible as properties in a good location are beyond the loan repayment capabilities of
the country’s young population. Malaysia’s property prices are certainly lower compared to our
neighbouring countries, especially Singapore and Hong Kong,” said Di Gregorio.

3. On the interest of investing in property overseas, 36% of Singaporean respondents showed a higher
interest compared to respondents from Malaysia (19%), Indonesia (17%) and Hong Kong (11%).
“Singaporeans are cashing in on a market where they will be able to get more value for their investment.
According to Bloomberg, the Singapore dollar has risen more than 5.5% in the past 12 months and is the
second-best performer among the 11 Asian currencies. Hence it was not surprising that Singaporeans
would pick Malaysia (42%) over Australia (14%) and the United Kingdom (8%) as their top three
destination of choice,” elaborated Di Gregorio.
Malaysian Property Market Sentiment – Affordability gets Top of Mind Concern
A majority of respondents are calling for more affordable housings (69%), as it is likely that many
families are starting to feel the weight of soaring property prices as opposed to wages, which continue
to grow at a slower rate.
According to Di Gregorio, high property prices translate into higher rentals, which mean that urban
dwellers who cannot afford to buy houses have to spend a fair bit on rent. This is in addition to the
current cost of living such as car ownership as well as rising prices of food, products and services.
While Budget 2013 promised a MYR1.9 billion allocation to build 123,000 affordable housing units in
strategic locations, Kuala Lumpur, Shah Alam, Johor Bahru, Seremban and Kuantan, 65% of respondents
did not think the move will be effective in meeting the rising housing demand for low-to middle-income
earners.
In addition to that, with the raise from MYR3,000 to MYR5,000 in the income limit for individual loans
and a combined household income of MYR10,000 between husband and wife under the My First Home
Scheme, 32% believed that the move will assist more people in their homeownership journey, while 28%
did not think it will.
Outlook for H1 2013
The residential property market during the first quarter of 2013 is expected to be soft as investors stay
on the sidelines. Sales of landed and strata homes are expected to slow down while prices generally
remain stable. Price correction may also take place involving landed and strata homes in secondary
locations.
The outlook for property investors in 2013 is still positive especially with selected locations poised to
experience rapid growth.
The full survey findings can be downloaded directly from www.iproperty.com.my
***The End***

4. About iProperty Group Limited (www.iproperty-group.com)
Listed on the Australian Securities Exchange, the iProperty Group (ASX:IPP) owns and operates
Asia’s No.1 network of property websites under the iProperty.com umbrella brand.
Headquartered in Kuala Lumpur, Malaysia, the Company is focused on developing and
operating leading property portals with other complementary offerings in Asian markets. It
currently operates market leading property portals in Malaysia, Hong Kong, Macau, Indonesia
and Singapore, and has investments in India and Philippines. With further expansion planned,
the iProperty Group is continuously working to capitalise on its market-leading positions and
the rapidly growing online property advertising market throughout the region.
Along with 18 property websites across the region, the Group’s portfolio also includes the first
comprehensive regional commercial property website, CommercialAsia.com, as well as a
regional property exhibition business and monthly property magazines in Malaysia and
Indonesia.
iProperty Group Network of websites:
• Malaysia: iProperty.com.my
• Indonesia: rumah123.com and rumahdanproperti.com
• Hong Kong: GoHome.com.hk
• Macau: vProperty.com
• Singapore: iProperty.com.sg
• Commercial: CommercialAsia.com
• India: in.iProperty.com
• Philippines: iProperty.com.ph
• Events: expo.iproperty.com
• Luxury: iLuxuryasia.com
For media enquiries and interviews, please contact:
Debbie Pereira (Ms)
PR Manager
Mobile: +6016 2334 386
DID: +603 2264 6888
Email: debbie.pereira@iproperty.com