KUALA LUMPUR: A whopping 93% of Malaysians who do not own houses expect to do so in the next five years, according to the findings of a survey conducted by HSBC Holdings Plc London.
The increasing supply of affordable houses and transport infrastructure by property developers would help stabilise property prices over this period, said the survey titled “Beyond the Bricks”.
The findings are based on a survey of 9,000 homeowners and non-homeowners in Australia, Canada, China, France, Malaysia, Mexico, the United Arab Emirates, the UK and the US.
Respondents gave their feedback on homeownership prospects, the changing role of houses and the pitfalls of budgeting.
Head of retail banking and wealth management Lim Eng Seong said over the past decade, Malaysia had seen a steep hike in property prices, but as of last year, prices had remained somewhat flat.
“Houses in the mid-tier property sector, ranging below RM500,000, are in high demand among millennials seeking to purchase their first home,” he told a press conference after releasing the findings of the survey.
However, millennials found themselves unable to purchase houses because of rising property prices and slow salary increments.
The study added that 75% of millennials intended to purchase a house but had not yet saved enough for a downpayment. Another 43% held back because they could not afford to buy the type of property they liked.
Lacking the cash to purchase a home, 62% of millennials considered spending less on leisure, 41% were prepared to buy a smaller place and 23% considered buying property with a family member.
The HSBC research also identified four actions that millennials could undertake to make homeownership a reality.
“Plan early and do not underestimate the deposit, budget beyond the purchase price, reconsider daily expenses and get a full view of your finances.
“Such examples include saving for the deposit early, budgeting extra items that make your house a home and seeking professional financial advice to help make the right choices,” Lim said.