To resolve the supply and demand mismatch, house prices in Malaysia needs to be tweaked to make them affordable for average wage earners, said Khazanah Research Institute (KRI) director of research Dr Suraya Ismail.
“According to our research, no normal average wage increment in the country could catch up with the price escalation of Malaysian residential properties,” said Suraya after attending the launch of the National Housing Policy (DRN) 2018-2025 on Monday (28 January).
And while Malaysia’s house prices are cheaper compared to those found in advanced economies like London, she noted that Malaysia is a relatively “young” city compared to London, having attained its independence only in 1957, reported The Edge.
“For a 60-year-old young city, our properties should be more affordable for local purchasers but most of our properties are unaffordable to the majority of wage earners. My question is, who are you [developers] building for? For local own-stay buyers or for who?”
She pointed that enforcement is also important in ensuring the National Housing Policy’s objective to encourage genuine homeownership may be attained.
Image source: The Edge Markets