Younger buyers prioritise price, repayments and value amid financing constraints
KUCHING: The desire to own a home remains strong among younger buyers, but what they want and what they can afford are increasingly two different things.
Homes priced between RM300,000 and RM500,000 are drawing the strongest interest, particularly from first-time buyers, although existing debts and other household commitments are limiting how much some can borrow.
Property industry players said buyers were consequently paying closer attention to monthly repayments, upfront costs and overall value before committing to a purchase.
Jasaland Property Consultants Sdn Bhd real estate negotiator Ahmad Farhan Mohd Salihudin said a prospective buyer might set their sights on a RM500,000 home only to discover that they qualified for financing at a considerably lower amount.
The gap between housing aspirations and borrowing capacity had made early financial screening increasingly important, he said.
The Roof Realty Sdn Bhd senior real estate leader Jeffrey Jan said loan eligibility remained one of the main reasons enquiries did not always translate into transactions.
“Wanting to buy and actually being able to get a loan are two different things.
“That is why I encourage buyers to check their eligibility early before spending too much time looking at properties,” he said when met at the SHEDA Property Expo 2026 at voco Kuching recently.
Jan said vehicle and personal loans, credit card balances and National Higher Education Fund Corporation (PTPTN) repayments could affect borrowing capacity, while irregular income, insufficient savings and limited financial records could further reduce financing eligibility.
Despite those constraints, demand remained active, particularly among first-time buyers and young families.
Jan said affordable single- and double-storey landed homes continued to be the preferred choice for many local purchasers.
“People generally like having their own land, car porch and more space for the family,” he said.
However, condominiums and apartments were also drawing enquiries from younger purchasers, investors and those seeking homes closer to the city.
Ahmad Farhan said terrace houses remained popular because of their space and privacy, although buyers were increasingly willing to consider high-rise units when they offered better locations and more manageable repayments.
Jan said buyers had become more price-sensitive compared with 2025, but their decisions were increasingly based on value rather than simply finding the lowest price.
“They are looking for value for money. For most first-time buyers, the priorities are monthly instalments and overall price, followed by location and the size or practicality of the house,” he said.
Timberland Group of Companies sales administration manager Sherry Jee similarly identified price as the first filter for purchasers.
“If a property exceeds their budget, location becomes irrelevant. Second to price is location, followed closely by architectural design,” she said.
Jee said investors generally preferred prime urban locations with rental potential, while owner-occupiers focused more on practical layouts and functional living spaces.
Landed developments in Moyan, Matang and Serian were attracting growing families seeking more space, larger parking areas and higher ceilings.
High-rise projects, meanwhile, appealed more to young professionals, smaller families and investors who valued accessibility and integrated facilities.
Projects near proposed Autonomous Rapid Transit (ART) routes, Universiti Malaysia Sarawak (UNIMAS) and upcoming healthcare facilities were also receiving encouraging interest because of their connectivity and potential for long-term appreciation.
Buyers in their late 20s to late 30s, particularly Millennials purchasing their first homes, made up a substantial share of enquiries, while Gen Z purchasers were beginning to enter the market.
However, many younger Gen Z buyers remained in the research and financial-planning stage as they built their careers and savings.
Jan said younger buyers often researched market prices, financing, locations and competing projects online before speaking to an agent.
Developers were responding by offering more compact units, practical layouts and incentives including rebates, furnishing packages, legal-fee assistance and lower initial entry costs.
Sustainability features such as solar panels, EV charging facilities and energy-efficient designs were also attracting greater interest, although buyers generally remained unwilling to pay a substantial premium for them.
“The market is not against sustainability. Buyers want to know how much extra they must pay and what they will receive in return, whether in the short or long term,” Jan said.
Jee said EV charging stations were becoming an industry trend developers needed to prepare for, although they remained an added advantage rather than a deciding factor for buyers.
