Property Affordability will always be key. It does not change.
In countries where the property market is more advanced than Malaysia, their suburb developments are popular. Staying further is normal and not something uncommon. While there are reasons such as one could buy bigger, one could be more relaxed etc, the actual catalyst is definitely property price.
Else, the first preference is of course to stay closer to the action, closer to the working place and even closer to all the creature comforts such as malls, cafes, restaurants, banks etc. These are usually not available in the further away areas in the beginning. So, price is usually the sweetener for people to consider moving further away from the city centre.
Article in nst.com.my PropertyGuru Malaysia’s latest biannual Consumer Sentiment Study for H1 2022 showed that home seekers prefer properties located on the city’s outskirts because they are quieter, have better pricing, more greenery, and larger-sized homes.
The same study showed that more than half (55 per cent) of Malaysians surveyed were looking for properties outside the city centre due to the Covid-19 pandemic.
According to Shylendra Nathan, country manager for Malaysia (PropertyGuru.com.my and iProperty.com.my), the growing preference for such properties directly reflects the pandemic-fueled remote working trend. One in every three Malaysians surveyed is currently working from home and intends to continue after the pandemic. Please do read here for the full report. Article in nst.com.my
Migration will continue to happen from smaller places to bigger cities
There are neighbourhoods which will appeal to many local people. For example, my good friend from Air Itam, Penang said this in one of his speeches many years ago. Born in Air Itam, school is in Air Itam, university nearby Air Itam, working nearby Air Itam and of course one day will also say bye-bye to this world from Air Itam. He will always have the attachment to Air Itam.
The ones who moved to Penang to work does not have any emotional attachment to any particular area. The ones who moved to the Klang Valley to work does not have any emotional attachment to any particular area as well. This is the same even for those who migrated to Kota Kinabalu to work from smaller towns in Sabah. They too have no special emotional attachments to any specific areas.
They could buy anywhere where the price looks attractive for the space they could get. Period. This is why demand will always increase for bigger cities. Popular areas continue to attract more demand than supply while further away areas will attract those looking for more value for their money. Happy understanding.
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