Homeless Malaysians wanted Home

Homeless Malaysians wanted Home


 Housing Un-Affordability in Malaysia
Bank Negara Malaysia (BNM) claimed that Malaysia housing units are being 'severely un-affordable' by international standard. Housing affordability can be measured based on Demographia International's Median Multiple method, which a house is considered un-affordable if the house price is three times higher than the annual household income. According to Bank Negara Malaysia, the maximum affordable house price is only RM 282,000 based on the ratio and median national incomes across Malaysia. However, the market price of housing, particularly in city area is far way exceed the maximum affordable house of Malaysians. 

 According to Qaiser Iskandar from Financial Surveillance Department, 80% of housing loan was rejected due to the low annual income ratio (more than 3 times) against price of the housing unit. Besides, the other minor reasons of loan rejection was due to the highly indebted of applicants, poor financial track record and documentation gaps.

Housing Affordability - Median Multiple Approach vs Median Price (2016)

According to statistic given by the National Property Information Center (NAPIC), the main oversupply issue for the first half of 2019:
     - approx. 33,000 overhang property units (which is totally new and unsold after six months)
     - around 43% are condominium and apartment units
     - cities with highest overhang units are Johor, Kuala Lumpur, Selangor and Perak
     - volume of overhang units are priced at RM200,000 to RM300,000 (22.3%) followed by homes 
       at RM300,000 to RM400,000 (17.5%), and homes bove RM1,000,000 (12.8%)

 It sounds miserable looking at the statistic of un-affordability. However, our government is doing their best in promoting severe kind of policy and affordable housing scheme for the Malaysians. Various initiatives to facilitate home ownership particularity for the B40 and M40 household segments, including guarantee schemes (e.g. Skim Rumah Pertamaku & Skim Jaminan Kredit Perumahan), monthly payment assistance (e.g. Skim Perumahan Belia) and rent-to-own scheme. Besides, Bank Negara Malaysia (BNM) also launed the Fund for Affordable Homes recently with RM1 billion allocation for two years facilitate home ownership fpr B40 households.



reference:
New Straits Times (Oct 24, 2019) Malaysian homes 'seriously unaffordable', says BNM official. Retrieved from: https://www.nst.com.my/business/2019/10/532940/malaysian-homes-seriously-unaffordable-says-bnm-official