Malaysia Housing Market In Need Of Overhaul

Pavither May 24, 2019

Malaysia’s housing market needs a major overhaul, with key areas requiring immediate attention including the provision of adequate affordable housing, difficulty in securing loans, inflated prices as well as mismatch of supply and demand.

This is the takeaway at a chief executive officer (CEO) roundtable at the National Housing and Property Focus Summit 2019 in Kuala Lumpur.

With this, industry players called for the creation of a central database and single entity to allow for effective management of property demand and supply, reported The New Straits Times.

Having a central database will help developers build the right properties that meet the actual needs of buyers and eventually help lower the oversupply situation.

“More importantly, the database must be made accessible to all stakeholders,” said Tan Sri Lim Hock San, group managing director at LBS Bina Group Bhd.

He noted that housing affordability is still a major concern for most Malaysian buyers and in most cases, is a financial burden, particularly for millennial and first-time buyers.

Bank Negara Malaysia data show that Malaysian properties are considered “unaffordable” based on international affordability metrics, with around 74 percent of the 171,000 unsold houses priced way beyond the reach of ordinary Malaysians.

To lower housing prices, more government land should be set aside for affordable housing projects, said Lim, who served as a panel guest speaker.

Read More: Different types of affordable homes built under government initiatives 

“At present, we know only a small portion of affordable housing projects are built on government or state-owned land. If more land can be allocated for affordable housing developments, this would increase the supply of affordable homes,” he noted.

“The raising household income level is also important as it will strengthen buyers’ position to secure better financing.”

To realise the national housing agenda, more collective measures should be taken such as providing further incentives to expand the adoption of industrialised building system (IBS) among builders and developers, said Lim.

“The housing issues at hand are complex, and there are no easy solutions. We need to work together and to think out of the box. Developers need to realise that ‘affordable housing’ is not about building cheaper houses,” he explained.

“It is about building stronger and better communities which allow people to thrive in an active and safe environment.”

 

How did the Malaysian Property Market Perform in Q1 2019? Read our PropertyGuru Market Index Report to understand how Kuala Lumpur, Selangor, Penang and Johor asking prices have been performing.

Terence
Oct 08, 2019
The gov definitely plays a part in the housing affordability too. Can you make a review for upcoming Taman Wahyu project https://lakecity-kl-north.com by Country Garden?
tbh3993@gmail.com
May 24, 2019
Malaysia Industrialised Building System (IBS) 2019 onwards...
tbh3993@gmail.com
May 24, 2019
IBS is not a pen and paper neither copy & paste.... - Industrialized Building System (IBS) Function as a system not a component or machine. - Open system and proprietary system is a technology. " Choose Industrialised Building System ( IBS ) for Economical Construction Industrialised Building System ( IBS ) functions as a comprehensive superstructure construction system whereby flexibility in it's customisation allows Architect's creativity to flourish." “ One of the mean issue IBS failed on leaking & cracks on the construction jointing mechanism methods, is nothing to do with the Architect & C&S consultant design. - Conquas or Q-Lassic should be carried-out upon the completion of the superstructure works (frame & wall) instead of upon completion of finishing work.
POST COMMENT

You may also like these articles

City house prices too high for mid-income earners

By Farah Wahida: Owning a house has become an elusive dream for middle-income wage earners as property prices in major cities such as Penang, Kuala Lumpur, Kota Kinabalu and Johor Bahru rose well a

Continue ReadingJanuary 30, 2013

Make House Prices Affordable to Local Buyers

 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 resea

Continue ReadingJanuary 31, 2019

Gov’t Urged To Control House Prices

National House Buyers Association vice-president Brig Gen (R) Datuk Goh Seng Toh has called for the establishment of a price control mechanism to keep the escalation of residential property prices in

Continue ReadingApril 26, 2019

Poor Price Discovery Causing Inflated House Prices

The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) believes home price inflation is caused by the absence of an overall housing

Continue ReadingApril 29, 2019

Feedback