Ninety three per cent of Malaysians who do not own houses, except 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 Brick".
The findings are based on a survey of 9,000 home owners and non-home owners in Australia, Canada, China, France, Malaysia, Mexico, United Arab Emirates, United Kingdom and the United States.
The respondents gave their feedback on home ownership prospects, the changing role of houses and the pitfalls of budgeting.
Head of Retail Banking and Wealth Management Lim Eng Seong said in the past decade Malaysia has seen a steep hike in property prices, but as of last year, it had remained somewhat flat.
"Houses in the mid-tier property sector, ranging below RM500,000, is in high-demand among millennial seeking to purchase their first home," he told a press conference after releasing the findings of the survey.
However, millennial found themselves to be unable to purchase houses because of rising property prices amid slow salary increments.
The study also highlighted that 75 per cent of the millennial intended to purchase a house but had not yet saved enough for a down payment and 43 per cent held back because they cannot afford to buy the type of property they liked.
In view of the lack of cash to afford a house, 62 per cent of the millennial considered spending less on leisure, 41 per cent were prepared to buy a smaller place and 23 per cent considered buying property with a family member.
The HSBC research identified four actions that millennial can undertake to make house ownership 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 seek professional financial advice to help make the right choices," Lim said.
-- BERNAMA
Bernama
Mon Mar 27 2017
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 Brick".
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