The quest for a perfect home often begins with a deceptively simple question: How much should you pay for it? Whether you're a first-time homebuyer, an investor, or someone looking to upgrade to a larger space, this question is a fundamental one. Planning to buy a house in can be a daunting task, especially when it comes to determining a reasonable price.
It's the financial cornerstone upon which your homeownership dreams are built. But finding the answer isn't as straightforward as it may seem. I've embarked on a research journey, utilizing data science techniques and publicly available housing listings to gain deeper insights into property prices in various states across Malaysia. In this post, I will take you through the process and share the findings from my data-driven analysis.
What You'll Discover:
- Informed Pricing: Explore the distribution of property housing prices across diverse regions in Malaysia. Gain insights that can aid in determining suitable property prices for potential purchases.
- Refined Filtering: Tailor your exploration by selecting specific states and districts. Witness the intricate web of property prices across different locales.
Please note that this is for educational purposes only, for practicing data analysis techniques. The data presented might not fully represent the intricacies of the property market. As you explore, remember that this analysis is a starting point. Real estate is influenced by multifaceted factors.
Housing price distribution by state or district
Use the dropdown menu below to select a district and observe the price distribution of properties in that area.
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The property details provided are based on a small dataset and may not cover all property types, locations, or market conditions.
Unraveling Mean and Median
Mean: Within this dataset, the mean price might consistently appear higher. It's an average calculated by summing all prices and dividing by the number of properties. Beware of potential influence from outliers.
Median: Consider the median—the middle value when all prices are lined up. It's less affected by extreme values and offers a more robust representation of the "typical" price.
Findings
Through the exploration of property price distribution analysis, a series of valuable insights has emerged, enhancing the understanding of both data analysis and the real estate market. Here are the pivotal takeaways that have significantly influenced the perspective:
Penang's Housing Challenge
Penang's popularity has driven up property prices, making it one of the more expensive places to buy a home in Malaysia. The demand for properties on the island, particularly in and around George Town, has resulted in increased competition and higher price tags. This can pose a significant challenge for those looking to enter the Penang property market, especially for first-time homebuyers.
When we dive into the data, we uncover a story about Penang's property market. The prices there are higher, and this tells us about the challenges people face when buying homes. It's a great example of how numbers help us understand real-world problems.
The RM1,000,000 home
Interestingly, our analysis revealed an intriguing trend in the data: a dip in popularity around the RM 1 million to 1.1 million price. This price point seems to be a critical threshold that divides buyers into two distinct categories:
| Aspiring Homeowners | Discerning Buyers |
|---|---|
| Buyers on a quest for their first home or looking to upgrade from smaller properties tend to avoid the 7-figure range. For many, this price range represents a substantial financial commitment, and the fear of overextending their budget may lead them to explore more affordable options. | On the other side of the spectrum, the "1 million" range attracts a different category of buyers - those with higher purchasing power or specific preferences for larger or more luxurious homes. This segment of the market is more discerning, looking for features, amenities, and locations that align with their unique lifestyle. |
The insight shows that there is psychological bias in pricing too. So, when you're selling your property, consider this quirky insight and maybe price it at RM999,999. You might also have better chance of selling your RM1 million house at RM 1.3 million too.
The "Typical" Prices
One of the coolest things to learn is how to find the "typical" price using numbers. Instead of guessing, we can look at the data and figure out what most houses cost. This helps us make smarter decisions when wanting to buy a house. It's like having a secret code to tell what's a good price and what's too expensive.
The next time your parents ask you to buy a house, you can use this analysis data to shock them on how expensive they have become.
Stay tuned!
I hope this helps you gain some valuable insight on the property market in Malaysia. I will be posting more data-driven analysis and uncover more insights on the property market in the future.
