Friday 29 Mar 2024
By
main news image

Housing affordability in Malaysia

KUALA LUMPUR (Nov 14): Malaysian properties are still deemed unaffordable for middle-income earners although price growth had slowed from recent years' pace.

The Edge Malaysia business and investment weekly (Edge Weekly), in its latest Nov 16-22 issue, quoted  MIDF Amanah Investment Bank Bhd economist Izzuddin Yusuf as saying property prices had risen significantly in recent years.

As such, the current slower price growth was not expected to make real estate more affordable for the middle-income segment.

“I think the idea of affordable housing has changed recently for the public, to a point that it is considered affordable so long as you are eligible for a bank loan.

“Property prices are currently at a level that is still unaffordable for ‘real demand’, meaning those who buy in order to live in the property, even as speculative buying has slowed significantly. From here, property prices will probably grow at a very slow pace and it will be a while before they become affordable for most first-time buyers,” Izzuddin said.

Edge Weekly reported that local property price growth had moderated on several factors.

These include higher supply expectation and regulators' measures to curb price increase amid weaker economic sentiment.

Housing affordability in Malaysia

For a better understanding on the Malaysian property market, kindly pick up and read the latest Edge Weekly issue.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

      Print
      Text Size
      Share