“The proposed MADANI deposit initiative by the Housing and Local Government Ministry (KPKT) is a commendable step forward in addressing the affordability challenges faced by homebuyers in Malaysia. As a leading property platform, we at PropertyGuru Malaysia are acutely aware of the financial hurdles that potential homeowners often face, particularly when it comes to the initial down payment required to secure a property,” said Kenneth Soh, Country Manager – Malaysia, PropertyGuru and iProperty.
Our H1 2024 Consumer Sentiment Study highlights that 74% of existing renters who considered extending their tenure for up to two more years before buying a home, cited insufficient savings for property acquisition. The introduction of the MADANI deposit initiative is therefore a significant move to alleviate these concerns. By reducing the upfront financial burden, this initiative directly addresses the affordability gap, making homeownership a more attainable goal for many Malaysians.
Kenneth goes on to comment that 36% cited the inability to save for a downpayment, therefore, the MADANI initiative not only provides immediate relief by easing the upfront cost but also encourages more Malaysians, especially the younger population, to take that crucial first step towards homeownership. Thus, the initiative provides much-needed relief and a viable pathway to homeownership.
The importance of affordability cannot be overstated. When the barrier of an initial deposit is lowered, it opens the door to homeownership for a broader segment of the population, particularly those in the middle and lower-income brackets. This inclusivity is vital for fostering a fair and equitable property market where more Malaysians have the opportunity to own their homes, regardless of their financial starting point.
“We believe that initiatives like these will have a lasting positive impact on the Malaysian property market. As we continue to support homebuyers through our platforms, we remain committed to providing insights and tools that empower Malaysians to navigate their property journeys with greater confidence,” he said.
We look forward to seeing the positive outcomes of this initiative and remain dedicated to supporting the government’s efforts to create a more inclusive and accessible property market in Malaysia.
){kind=link}