Connect with us

News

BNM Director: Houses Prices in Malaysia Are Seriously Unaffordable By International Standards

Published

BNM Director: Houses Prices in Malaysia Are Seriously Unaffordable By International Standards - WORLD OF BUZZ 4
Source: The Star & NST

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

Buying a house seems like a rather farfetched dream for us millennials, especially when we look at our salaries and then we consider property prices these days. We often wonder how on earth will we be able to actually buy our own houses with our meagre salaries, and this has been recently confirmed by a Bank Negara Malaysia (BNM) official who said that house prices are simply too high for us.

BNM Director: Houses Prices in Malaysia Are Seriously Unaffordable By International Standards - WORLD OF BUZZ

Source: The Star 

According to NST, Financial Surveillance Department director Qaiser Iskandar Anwarudin said that prices of homes in Malaysia are considered “seriously unaffordable” by international standards. This was calculated based on the median multiple methodology developed by Demographia International and recommended by the World Bank, United Nations and Harvard University.

Using that methodology, if the house’s price is not more than three times of annual household income, then it is considered affordable. “The affordability (in Malaysia) has deteriorated with the median multiple affordability (the ratio of house price to households’ annual income) rising to 4.8 times in 2016 from 3.9 times in 2012,” he said.

The number of unsold properties in Malaysia is now at 73%, with Johor having the highest amount followed by Selangor, Kuala Lumpur, Perak and Pulau Pinang. He explained that these home affordability issues affect the whole country and cause many units to be unsold as no one can afford to buy them. Sad but true!

Currently, newly-launched houses have an average price of RM417,262, which means Malaysians cannot afford to buy them. The maximum affordable house price that should be offered nationwide is supposed to be RM282,000 for an average household. However, prices of affordable homes in the market are actually RM298,000, Berita Harian reported.

BNM Director: Houses Prices in Malaysia Are Seriously Unaffordable By International Standards - WORLD OF BUZZ 2

Source: FMT

He gave an example, saying that the actual house price median is RM793,000 in Kuala Lumpur while the maximum affordable level is RM454,000. As for Selangor, the maximum affordable level is RM375,000 but the actual house price median is RM482,000.

In Johor and Penang, the maximum affordable level is RM291,000 and RM302,000 respectively but the actual house price median is RM439,000 for the former and RM350,000 for the latter. “Housing unaffordability remains a major hurdle for people intending to own a house,” he said.

BNM Director: Houses Prices in Malaysia Are Seriously Unaffordable By International Standards - WORLD OF BUZZ 3

Source: NST

Qaiser mentioned that although there was still a glut of properties in the market, it was gradually improving as house prices were going down at a moderate pace. Are they really? “The proportion of new launches is also going higher towards the affordable houses as compared to the past,” he said.

He informed that BNM has launched a Fund for Affordable Homesearly 2019 with RM1 billion allocation for two years to facilitate homeownership for B40 households. This fund is expected to help more than 1,100 households own a home with a total asset value of RM180 million.

Let’s hope that one day soon, we can all afford to buy our own homes!

 

Also read: Survey: 53% of Malaysians Cannot Survive More Than 90 Days With Their Savings

Survey: 53% of Malaysians Cannot Survive More Than 90 Days With Their Savings - WORLD OF BUZZ 2

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

My Post 1 2025 03 13T133253.042 My Post 1 2025 03 13T133253.042
News1 hour ago

“I bathed in 7 types of flowers” – M’sian Cancer Patient Loses Everything After Seeking Help From Bomoh

An elderly cancer patient is sharing her despair after having been deceived by a bomoh (shaman), causing her to lose...

collage 42 1 collage 42 1
News1 day ago

61yo M’sian Woman Tragically Dies After Suffering a Heart Attack While Riding Her Motorcycle in Penang

A 61-year-old Malaysian woman sadly passed away after falling into a roadside ditch while riding her motorcycle in Penang. According...

My Post 1 2025 03 12T135446.325 My Post 1 2025 03 12T135446.325
News1 day ago

20yo SG Man Allegedly Steals Over RM1 Billion in Bitcoin, Flaunts Wealth at US Nightclubs & Gets Arrested

A Singaporean man was recently arrested in what is currently known as the largest cryptocurrency theft case in the United...

collage 41 1 collage 41 1
News1 day ago

Indonesian Officer Arrested After Killing His 2-Month-Old Baby While His Wife Was Shopping

The police force was shaken by an incident involving one of their officers after his 2-month-old baby was killed while...

feat image fraud feat image fraud
News1 day ago

Chinese HR Manager Steals RM9.74 Million from Company by Creating 22 Fake Employees & Collecting Their Salaries

For about eight years, a human resources manager in the Minhang District of Shanghai, China, defrauded his company of a...

My Post 1 2025 03 12T103723.115 My Post 1 2025 03 12T103723.115
News1 day ago

Sibu Man Sentenced to 3 Months in Jail After Failing to Show His IC When Asked by PDRM Officers

A man in Sibu, Sarawak, was sentenced to 3 months in jail after he was unable to display his Malaysian...

collage 39 1 collage 39 1
News1 day ago

Myvi Allegedly Runs Red Light & Hits Motorcyclists in Nilai, Just 4 Days After Unlicensed Honda Jazz Driver Crash

On March 6, 2 secondary school students lost their lives in an accident after their motorcycle was hit by a...

collage 51 collage 51
News1 day ago

Second Tornado Tears Through Sekinchan in Less Than a Week, Damaging Over 30 Houses

Another tornado tore through Sekinchan yesterday evening (March 11), less than one week after the whirlwind hit the district. In...

Announcement

Latest Videos



TRENDING TODAY