KUALA LUMPUR, April 30 — The price of a new apartment has risen to an average of RM582,887 in Malaysia, according to data released by global real estate network IQI.

IQI, which is a member of the international real estate technology group Juwai IQI, said in its Residential Sales Market Report for Malaysia’s first quarter of 2024 that this figure was above the National Property Information Centre’s (NAPIC) 2023 average house price, which was RM467,144.

According to Juwai IQI co-founder and group ceo Kashif Ansari, the average subsale sales price across Malaysia in the first quarter of the year was RM521,614 and was highest in Kuala Lumpur.

“It is no surprise that Kuala Lumpur has the most expensive property in the country. The average subsale home price in Kuala Lumpur is RM801,557. New homes are somewhat more affordable, with an average price of RM708,462.

“After Kuala Lumpur, the three most expensive states for subsale homes are Sarawak (RM572,680), Sabah (RM526,510), and Johor (RM447,727). The next three most expensive states for new home sales are Johor, Sabah, and Kedah,” he said in a statement.

The report is based on the analysis of more than 70,000 residential sales in the subsale and new project markets across Malaysia since 2018.

Melaka is the least expensive state for new units. The average price of a new unit home in Melaka is RM305,463. After Melaka, the next least expensive states in which to buy a new unit are Pahang (RM338,690), Perak (RM343,028), and Kelantan (RM352,970).

Terengganu is the least expensive state for subsale homes, with an average price of RM293,714 followed by Perak (RM322,256), Kedah (RM323,399) and Pahang (RM346,144).

According to Kashif, the majority of transactions fall within the lower price ranges, with over half of new unit buyers and nearly half of subsale buyers spending RM500,000 or less. He said this indicates a well-balanced market catering to buyers across different income brackets.

In terms of affordability, IQI’s report highlighted the advantage of purchasing over renting.

“If a buyer puts down RM30,000 on a RM300,000 home, their monthly mortgage expense would be RM1,228 per month. That makes buying an affordable home significantly cheaper than the average rental, which is RM1,975.

“Buying an affordable home would save you RM747 per month compared to paying the average rent. The data on monthly expenses can help buyers understand their financial position when considering the purchase of a home.

“You need to know your budget when assessing long-term affordability and pay-off amidst fluctuating economic conditions. We continue to believe that owning your own home is the shortest route to financial security and independence for most Malaysians,” he added.