{"id":18533,"date":"2015-08-28T15:41:37","date_gmt":"2015-08-28T07:41:37","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=18533"},"modified":"2015-09-14T11:47:16","modified_gmt":"2015-09-14T03:47:16","slug":"malaysias-properties-are-seriously-unaffordable","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/malaysias-properties-are-seriously-unaffordable","title":{"rendered":"Malaysia\u2019s Properties Are \u2018Seriously Unaffordable\u2019"},"content":{"rendered":"
Khazanah Research Institute\u2019s (KRI) latest research report found that Malaysia\u2019s residential property market to be \u201cseriously unaffordable\u201d.<\/p>\n
The findings show that the median house price is 4.4 times the median annual household income.<\/p>\n
Datuk Charon Mokhzani, the managing director of KRI, explained during the launch of the report that an affordable market is one where median house price is three times median annual household income.<\/p>\n
\u201cThe challenge of providing affordable homes<\/a> for all households has captured the focus of policymakers. In Malaysia, policy initiatives relating to housing affordability have been through transferring physical or financial resources to low-income households. Middle-income households, however, are neither eligible for social housing nor able to afford private sector-supplied houses,\u201d Charon said.<\/p>\n \u201cPolicy should therefore be geared to improving the elasticity of housing supply, to make it more responsive to the needs of all sections of the population,\u201d he added.<\/p>\n The report also indicated that the rising house prices<\/a> is perceived as a determining factor for the increasing land prices, instead of the other way around. This is due to the unwavering demand for the increased land prices, as developers are willing to pay for them due to the increasing housing prices.<\/p>\n The rising house prices is not necessarily be due to the construction costs, as there was no consequent drop in house prices even when the Malaysian construction cost has been falling, said Charon.<\/p>\n \u201cThe provision of social housing for the majority of population will exert financial pressures on government spending. As Malaysia becomes more urbanised, the demand for affordable housing will increase. If the trend is not addressed, the bottom 40% and middle 40% of income earners will likely require social housing in future. There is a strong need to reform the supply-side and to enhance its capacity to develop a sustainable and responsive housing sector,\u201d Charon said.<\/p>\n [Source<\/a>]<\/em><\/p>\n Malaysia’s housing market is deemed “seriously unaffordable” by Khazanah Research Institute’s latest report. <\/p>\n","protected":false},"author":9,"featured_media":18534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[216,21],"tags":[],"class_list":["post-18533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-updates","category-properties"],"acf":[],"yoast_head":"\nHome loan plays an integral part of home affordability. Get started by shopping for the loan package with the lowest interest rates<\/a>.\u00a0<\/strong><\/h3>\n","protected":false},"excerpt":{"rendered":"