The proposed MADANI deposit initiative by the Housing and Local Government Ministry (KPKT) is a timely and commendable effort to address the affordability challenges faced by homebuyers in Malaysia, according to Kenneth Soh, Country Manager of PropertyGuru and iProperty Malaysia.
Soh highlighted that a significant portion of potential homeowners, particularly renters, struggle with the financial hurdles of saving for a down payment.
"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.
"By reducing the upfront financial burden, this initiative directly addresses the affordability gap, making homeownership a more attainable goal for many Malaysians," Soh said.
Soh added, "Meanwhile, 36% cited the inability to save for a downpayment. 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.
The initiative, therefore, provides much-needed relief and a viable pathway to homeownership."
Additionally, Soh highlighted the importance of affordability that 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, according to Soh 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.
The initiative is seen as a positive step towards creating a more inclusive and equitable property market, aligning with the needs of the younger population and first-time homebuyers.
