With property prices going up and salaries not really keeping up, is it still realistic for millennials to buy a home in Malaysia? A lot of people say renting is better, while others insist that buying is the way to go. What do you all think?

Some things I’m curious about:
🏡 What’s a realistic budget for a first home in KL, Selangor, or other major cities?
💰 Is My First Home Scheme (Skim Rumah Pertamaku) or other government schemes actually helpful?
📉 Will property prices drop or keep rising in the next few years?
🏠 For those who already bought a house—any regrets or tips?

Would love to hear your thoughts! Are you planning to buy, already own a place, or just sticking to renting?

if market (investor, developer) continue to push average house price UP.
the final game over will be themselves.


We need a Place to stay
Not necessary to OWN it.

Like doing Business, Go ask 100 out of 100 startup
how many of them thinking of owning props?? Buying shoplots???

exclude those not ambitious, have no plan. You get zero...

We need a place to jump start, do business.
not owning a place.

-----

If Market continue to push it to near impossible zone.
Well, home buyer would turn to something else more realistic.

My Prediction. Future gen = nomad. living in thier Hybrid MObility Home.

Not really can afford the same range of house. Salary range didn't really go up in tendem with property price except min wages.
Now they can afford is because the units become smaller to try maintain lower price.

budget RM500K. last time is 1000sf. 10 years later is 500sf.

In stead of blaming the property price shoot up, i would rather say it is more the devalue of our money, everybody money, globally

Says, you buy a house at 300k 20 years ago, now the price shoot up to 600k (conservatively). Did you earn 1 more house? No, you still own just 1 same house. It is only our money depreciated as of now compere to 20 years ago, and now we need 600k to buy the same house

I am not scammer so I can not guarantee you that the property price will sure appreciate (even I believe so) in long run, but I can guarantee that you our money will devalue FOR SURE.

I am glad I own some properties, they doesn't make me richer, but keep my nett worth stay put even in the environment where our money value depreciated a lots

Go ahead and buy within your affordability is my advise

And for those who claim future generation will go nomad way just because the property price keep going up, I would see it as a careless prediction or just a very less-clever opinion, which you can just ignore : )

IMO, realistic budget for first home is around RM300k.
Coincidentally that's also where rumahwip and rumah selangor put their price.
People still buy those property so definitely they can afford to own a home.

Rent vs buy is a different matter.
I honestly don't see any problem in renting. Less commitment since at most you only need to pay 3 months deposit.
Buy maybe if you really like that area or you found a really good deal.

Will property value go up or down? No one can predict the future, just pick a place where you feel comfortable.
Not a fan of flipping house and I think the trend is also dying.

Already happening for new launches.

500sf 500k but bao ka liao legal fee and furnishing except mot la.. haha

This is only happening at prime location but not suburban area. Not to forgot Malaysia still have plenty of undeveloped land yet.

If young generations are opt for nomad lifestyle they can always stay away from city center and those sub urban town you are still able to get some affordable pricing & liveable size of houses

Compared to our earlier generations, the open market properties have been priced out of most of our affordability.

Nevertheless, I still think we have one of the most accommodative and supportive Government in the world in promoting homeownership.

You'll be spoiled for choices for a number of really attractive Government affiliated affordable properties, especially in Klang Valley.

And also the 100% financing for first time homebuyers plus tax relief for progressive interest plus stamp duty exemptions.

What more do you want?

Though I don't think this privilege will last forever. There will come a time the Government rolling back all these benefits, I think.

Here's my take as a property agent,

Yes it's still realistic. Of course, the only downside is that wages has not been keeping up but at least we are seeing changes these past few years.

Take China for example, downpayment is at 15% for first home (Shanghai at 20%), used to be even higher in the past.

Singapore at 25% (with 5% in cash and balance 20% from CPF)

Does Malaysia sound more realistic then? 😅

1) When it comes to realistic budget, I would say max 30% of your monthly income. Make it max 30% of your nett income would be even better. So if your nett income is RM 10k, max should be at RM 3000 for your monthly mortgage which would be a property in the range of RM 500k - RM 600k.

2) Yes the schemes are helpful. Personally bought and staying in a rumahwip on a 100% loan. Around 330k (as I have additional parking), monthly around RM 1600+ (including maintainance), since I am staying alone, I rented out the other two rooms at RM 1200 which is well, very good for me. Of course, the location is also very important. I am very comfortable with this area of purchase and I know who are my exact potential tenants.

3) It will rise and drop. Average annual growth is at 5% at states like Selangor, KL, Johor, Pahang. Read it again, AVERAGE. So some years you might have positive 10+ % growth , some years you have negative growth

4) Don't over leverage. Things can and will happen regardless of how well you are doing at the moment.

Think what you want to do with the property. Own stay? Investment for capital appreciation? Investment for high rental yield? Own stay + investment? Different property caters for different purposes.

Don't expect your selling price to be the same as your SPA price if you are thinking to sell it in the early stages. A few days ago, a client wanted to sell a property at 600k. She bought it at 530k. Actual transacted price is around the 480k region but since she has paid it off, I advised her to rent it out for the time being till the market gets better.

As you are usually given the 10% rebate on project based properties, other owners who are cash strapped or have some financial difficulties will just sell it off at the price after the rebate. And that will affect the transaction price of the whole development in the short term.

It's a buyers/renters market at the moment. Plenty of choices but as an asset class, property is cyclical in nature. When it comes to the sellers market, one should not then complain of the high property prices and high rentals.

It's a sellers market at the moment in Singapore, and I can assure you that the young people there are feeling hopeless towards the property market as it's getting more and more unaffordable. There's even quite a few number of expats moving over to Malaysia because rentals are getting crazy there.

Cheers

This post has been edited by raymondleong29: Feb 14 2025, 10:43 AM

Here are some facts:
material costs, consultant costs, compliance costs, land costs etc. all have skyrocketed
Developers margins are squeezed almost by half from the good old days of the last property boom around 2006 to 2008 ish
Our money has devalued/ depreciated
Land in prime locations are running out
salaries have not caught up with costs of living
Banks more strict in giving loans

BUT:

Government regulations encourage/ force developers to build affordable homes
1st time home buyers never had it better by getting heavily subsidised homes (in the past only the B40 can get low cost flats)
Free stamp duty etc

Overall, millenials can still get affordable homes but location may not be what you want. IMHO, go get one as it will surely appreciated since you are getting a unit below cost/ heavily subsidised.

It's still possible to buy a house if you plan properly. I bought a 500k condo in KL last year with 10% downpayment and a decent salary. The key is to avoid lifestyle inflation—cut unnecessary spending, save aggressively, and look at areas slightly further from the city center. Government schemes like PR1MA or Rumah Selangorku can help too. If you wait too long, prices might go even higher.

1/ Realistic budget - depends on your budget. Ideally don't exceed 30% of your salary. Prepare to make some sacrifices like location, type of properties, etc. If you cannot afford, then rent and save money first. Don't let the FOMO spirit make you take a decision that you regret. Buying a property is a big step and take sufficient time to research and don't blindly trust the info from a single entity especially from REN, property gurus and developers as their core interest is still to earn money. Always double check.

2/ First Home Scheme - Yes, it is still a good scheme especially for those who are starting a family and need to place to raise kids.

3/ Property Price Outlook - Depends on various factors like land scarcity, condition of the condo, development of the areas, etc. I don't wish to speculate as I bought my place for own stay. I focus more on how the location, affordability and type of property make sense for me. Honestly, regardless how high the price might go, it will barely earn much considering the cost of ownership (maintenance fee, bank interest, repair, renovation, taxes, etc)

4/ Bought a house - At this juncture, it's a mixed feeling. There are pros and cons for buying especially when it comes to flexibility. But I have done my research and made the decision to my best knowledge.

It is also nice to get out from renting world as I have a long experience living in poorly maintained houses, racist landlord/landlady, etc.

Well said

1. Save up enough for the 10% deposit first
2. Whether is RUMAWIP or Rumah Wilayah or open market project is all depends on your afforability, office location (hybrid or fully office)
3. Property price will only stagnant or increase slowly, won't drop. Do you see food price drop or increase throughout the years
4. Follow your first impression on the project to purchase. Do survey on the actual site and it's traffic condition and what shop or public amenities that you need for you or family need.
5. Rent first before you can actually afford a property. Calculate if you can afford, monthly loan, maintenance fee, quit rent, assessment fee, fire insurance, renovation cost and repair cost for long run.

Why not?

There are more and more new launhed projects are actually priced "lower" than the new properties launched in 2012-2015. How can it be lower price? Many new projects come with high cash back or discount, although smaller unit but better facilities and 2 carparks (old condo was only 1 carpark mostly).

Also there are number of affordable houses initiated by federal government and states gov such as rumawip and selangorku where the price is at RM300k. Many still not aware there are many new affordable houses are pending to be launched. Land already ready but not yet launched due to current affordable houses are still unsold.

you might be able to buy a property... but better factor in the maintenance fees as well.. most of the folks still can stay in the condo but can't afford the maintenance fees all add in.

In these day and age, you afford to buy a property in a young age but dipping into EPF funds ( borrowing from your future self ).

Better way is to save up and pay more than downpayment. And at the same time build up your passive income to a stage that you're able to support more than half of your monthly commitment for your (home + maintenance fees).

Whats not guaranteed is your ability to keep your work in future and your income. No harm in renting a room... then slowly going to rent a small apartment... then once you build up the above... move to owning your own place.

How confident when you said that the property price "won't drop"?

I cincai point some projects out and lets debate and correct me if I am wrong.

Houses built in Semenyih, Puncak Alam, Rimbayu (surrounding), and Rawang. Majority landed houses VP on 2016 - 2020 the second hand market price is lower than SNP price. I got one unit and if you can confirm to buy at SNP price I can sell you straight (since you said property price won't drop). Bear in mind that I have spent tens of thousands on reno and also serving loan for few years. Selling at SNP price I still make a big lost. But the problem is in second hand market now the value is 10% below my SNP price. I am glad to sell to you if you accep it as SNP price. Lolz

Maybe you got the excuse these places far from KL. I simply take 2 projects with KL postcode, Lxkeville small unit launched price RM590k in 2017 and now second hand value is RM500k as advertised. Setapak Px18 lowest price launched in 2018 is 470k and second hand value now about 480k as advertised (the final sell out should at least 5% lower).

Property is expect to drop more in future because
1. birth rate drop
2. many young people remain single or married without kid
3. Parents already bought houses for kids
4. Flexible job and rent is more convenient

Bro, just curious which location u bought?

Point no.3 , as mentioned by another user, is unfortunately untrue when it's mentioned that property price won't drop l.

As a property agent, I have seen quite a number of cases where property purchased in the past by clients has been stagnant, value has dropped even when purchased 20-30 years back and worse is, unsellable.

My aunt asked me to help her to sell a shop unit of hers in Banting, she bought at 180k 20 years back and even selling at that price now, there's absolutely no taker because that whole area is just in such a bad condition as a whole, the development. Even if she drops the price tremendously, I can honestly say that there will be 0 takers. Of course, there's also many cases where it has appreciated a lot some of their "right" purchases.

Whereas property nowadays are more on the stagnant side as developers has priced in all inflation and future pricing. But can we buy property nowadays? Yes, you still can. But don't expect it to fly in value. Price will remain stagnant till the next boom.

Quite a lot of developments are transacted below SPA price. Why? Because of the rebates given, desperate sellers just sell la 10% below SPA since that's the "rebate" given anyway. But as long as the expectation is set (which most people don't seem to bother to think themselves), then all is good.

Property is cyclical in nature. In the long term, most properties will appreciate due to inflation etc and occasionally it will rise up quite a lot but history has shown, most properties appreciate around the 5% mark annually. In case people don't know how to read, it's average.

Malaysia is one of the most affordable and easiest countries where almost everyone is supported (from local councils, state and federal governments, banks, developers etc) to buy a property, especially first home.

But whether most of the properties will provide a good living quality and long term to build equity is another story together.

This post has been edited by gks: Feb 18 2025, 04:07 PM

I bought my first home with a bit of a twist. A 275k 2 bed, 1 bath condo. Subsale, bought with skim rumah pertamaku.

Good thing was I bought an ex Airbnb, I sold most of the furniture and replaced it with my own. But some high value items like TV, fridge, etc is kept.

Understandably buying a subsale isn't easy, especially with down payment and all, but I managed to work out a deal with the landlord whereby I would rent the place till the disbursement.

That way I didn't have to rent elsewhere, the down payment was just an earnest deposit and I only forked out for stuff like legal fees and stamp duty. Which was do-able as I paid as I go.

Cons would be Skim rumah pertamaku might have high interests and you are taking out a >100% loan compared to a new house with all the rebates and whatnot.

My justification is that I am able to pay off the house in a couple of large chunks over the next few years or if all else fails, I can rent it out for around 1.4-1.5k, while my loan is lesser than that. Also being a "tiny" home, maintenance isn't all that bad.

The affordability has come at a cost which is the ability to grow wealth at an exponential rate like in other countries where the supply is choked.

Malaysia government is using official data for statistics. It was claimed by a minister few years ago our grey economy is like 30% of GDP aka money that not audited/taxed by government. In my view, yes certain group are not able to buy property (which is common in many countries) but look strictly at factor of ease of property ownership, Malaysia is one of the easiest.

family getting smaller,
single getting bigger,
housing size still the same = higher price = low demand
low demand = no buyer
no buyer = developer push for high end market
high end market = no demand
no demand = developer force open to foreigner market
foreigner market = higher price
higher price = low local market demand

kek

For first time buyer, budget can set RM 300k - 400k.
First Home Scheme (Skim Rumah Pertamaku) is a good choice for you to start.

All want fancy and new. No trade up and delay gratification mentality.

Most that bought end up bankrupt later and lelong. As no proper financial planning. Majority yolo attitude how to buy.

May I know what portal you used for property searching?

In 10 years time, do u all think basic landed property houses remain around RM500k and above, or will be almost RM700k starting already?

Usually PropertyGuru.

Bro, just look at the launch prices of new 2 storey landed at the outskirts of klang valley. already most of the above 700k! No need 10 yrs, now already happening. Elmina new launches above 1 mil already - 2 storey terrace. Can still get 1 mil for 2 storey freehold in PJ but very old, need about 200k to fix up. Landed House prices 20 years ago already fresh grads cannot afford. If salaries don't rise in tandem, soon fresh grads can only buy shoebox units provided Govt stop forcing developers to build affordable homes below 300k.

The definition of the starter home has changed. It used to be a terrace house in our parents days then a 1k sqft condo in the 2000s and now a studio or rumahwip for gen Z. Admittedly rumahwip really levels the playing field to give some decent housing size options.

In tandem with high density >1k units

But the point is housing options are available. Homelessness is a real major issue in developed countries for youngsters and the ageing with no assets.

I mean for subsale landed houses basic in further areas like Klang, Shah Alam, Kepong, etc. 20x70 houses still can get around RM600k+

Yes there will still landed property priced around RM500k even after 10 years. In cheras area especially Mahkota double storey houses are around 500-600k now and price stagnent for long time, in Klang quite many houses price stagnent for long time and easily can get RM500k double storey. In Shah Alam some old area and Rawang also the price hardly appreciate. Those houses which already built for 20 years the new buyer will need at least 200k to do repair and very minor reno. How many people afford to do so? Plus nowadays got young people no need buy house coz parents already bought one for them or some people remain single or couple without kid they prefer rent. Rental hardly appreciated too coz oversupplied. If landlord increase the rental the tenant can easily move to another unit in the same condo remain the same price.

I see it a damper with the co-living post 2017

This post has been edited by jojolicia: Feb 20 2025, 12:36 PM

Ah need at least RM200k to reno and repair these older subsale houses? M

For new double storey house now the medium renovation already cost about RM100k - 150k and new house no repair needed. If buying sub-sales old house in 10 years time with renovation and repair it is easily cost RM200k.

My new neighbour haven't move in yet and I bumped with him once and chit chatting. He told me the house he bought double storey (small size) next to us the repair cost alone already cost RM150k. The repair things are the roof, 2nd foor ceiling, water piping, re-wiring, front yard awning, auto gate set etc. The house is nearly 30 years old and many things need to fix. Imagine the next 10 years the cost is easily up 20-30% especially the labour cost is getting higher compare to material cost.

This is on the low end of estimates. You want something a bit fancy like those internal courtyards nowadays then you’re looking at 500k+. Redoing cabinetry + kitchen etc to a good standard also costs a lot. You luck out if you can reuse a lot of things from the original owner.

Wow, RM150k without furniture yet? Can help ask him what else he did so far? That sounds almost exactly like the things that I would be doing once I move in to my new subsale house I bought near Subang. It's almost 20+ years old as well. I was hoping it would be around RM100k for tiles, re-wire, plumbing, fix rooftop, autogate. Won't be needing awning or any back extension so far. Just the internal components are the ones which are important for now.

I hardly answer you about this because I only bump with him once.

Btw I have some opinions.

Re-wiring. If single phase maybe below 15k can entiring house re-wiring plus hacking wall. My friend got a sub-sales house with 3 phase and he was doing re-wiring about RM20k last year. Since you got landed house you can consider 3 phase wiring to prepare in future you may have EV car (even if no now).

Plumbing. I have no idea but I think maybe RM10k for repair.

Fix rooftop. Repair only the price should below 10k but if need of new roof tile and structure maybe 20k or more. I did ask last year because thinking of repairing rooftop.

Plaster ceiling on 2nd floor - entire 2nd floor maybe need about 10k +- just guessing.

Autogate - Since you doing re-wiring the workmanship of putting armoured cable can get discounted. New gate and system maybe cost you 15-20k.

*for wiring you can buy your owe cabel and ask the contractor to use it. I got a contractor friend he suggest use the Mega brand which is long lasting and good quality compare to many Chinese brands or unknown brand.

Millennials have more ways to earn money compared to older gen, sure can.

When we moved in to our newly built double storey house around 7 years ago, the renovation- built-in cabinets, tiling for back yards, kitchen wet works, electrical, a small extension already cost 150k. My friend redone her 30 years old house cost her 300k. All these before Covid when materials and labour cost is much lower than now.

So about RM20k for doing three-phase wiring, then RM15k for roof...then RM10k for autogate...then bathroom retiling and change toiletbowls/sinks (if old house) another RM20k for let's say 3 bathrooms. Damn the cost sure adds up

By your experience, if just the kitchen cabinets, wardrobe and other built is plus plaster ceiling, how much?

Why can't afford?
As long as you're willing to settle for pr1ma, or consider leasehold and those located at not so great locations, I don't think it's that difficult to own a house.

Look at scientex houses for instance, so damn cheap.

Scientex nowaday already selling from 4xxk

Pr1ma range from 3xxk to 5xxk.

This post has been edited by Jazted: Feb 24 2025, 08:50 PM

Yes, very affordable compare to other country

It is poppycock and ignorant to compare with other countries as income is different.

With more prc contractors available, renovation price will likely be competitive.

Depends on the wood quality, size and how many rooms or areas needed. For us, it’s about 70k - 4 bedrooms (built-in all the way to the ceilings for 3 rooms and a walk-in for master’s room), dry and wet kitchen cabinets plus worktops, living room tv cabinets and shoe cabinet at the entrance. No plaster ceilings. There were some residents who did group buy and the quote is much cheaper but so is the quality of materials.

This post has been edited by nauticat99: Feb 25 2025, 01:05 AM