Connect with us


Over 80% Unsold Houses in Malaysia Cost Above RM250k & We Still Can’t Afford Them


Over 80% Unsold Houses In Malaysia Cost Above Rm250K And M'Sians Can'T Afford Them - World Of Buzz 2
Source: Shutterstock

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

The property prices in Malaysia have been increasing exponentially over the recent years and it looks like more and more Malaysians can’t afford to buy a home for themselves. In the latest financial stability review for the first half of 2018 released by Bank Negara Malaysia (BNM), they highlighted that the property glut in the market has caused an imbalance, The Edge Markets reported.

The oversupply of properties with not enough buyers who can afford to buy them due to staggering prices is the main reason for this issue as BNM says that the demand for affordable housing is still there. According to Malay Mail, as of end-March, the number of unsold housing units increased to 146,196 units with more than 80% of unsold units priced above RM250,000. 

“Excess supply of office space and shopping complexes is also expected to persist as vacancy rates deteriorated further in the first quarter of 2018. Nevertheless, sustained demand for affordable housing, particularly from first-time home buyers and prudent underwriting practice in lending to the property market and related sectors are expected to mitigate risks of a broad-based price correction,” BNM said.

Over 80% Unsold Houses In Malaysia Cost Above Rm250K And M'sians Can't Afford Them - World Of Buzz

Source: the star

This statement echoes the one that BNM made in February where they warned that there was a shortage of affordable houses in Malaysia. In that particular report, they also mentioned data showing housing prices to be “seriously unaffordable” since 2016 by international standards. That is so sad but so true!

Although a temporary freeze on four types of major construction projects had been ordered, it looks like the oversupply problem still persists. This has resulted in banks being extra cautious when lending out money to borrowers as they are very strict with the guidelines to ensure that only high-quality loans were given out. 

“About three-quarters of new loans approved were to borrowers with debt service ratios (DSR) of less than 60 per cent,” BNM said.

“Overall household debt accumulation has also been on a more sustainable path relative to income growth, as a result of the cross-cutting measures that have been implemented since 2010. The ratio of household debt-to-GDP continued to moderate and currently stands at 83.8% in the 2Q 2018 (2017: 84.2%),” they added.

With high property prices constantly surpassing the affordability of average wage earners in Malaysia, this problem needs to be addressed well. Otherwise, BNM says that with the shortage of affordable housing, the goal of owning a home in Malaysia will be unreachable for ordinary Malaysians. 

What do you think about this property glut in Malaysia? Let us know in the comments section!


Also read: 11 New Malls Are Opening in Klang Valley in 2018 But Here’s What Locals Are Saying

Do We Really Need 11 New Malls In The Klang Valley? - World Of Buzz 9

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

Just In

Ft Raya Ft Raya
News2 hours ago

JAKIM Urges Public to Stop Speculating or Making Assumptions on Date of Hari Raya This Year

Following the suddenness in the announcement of Hari Raya last year, it appears that some mosques are trying to get...

Ft Items Ft Items
News1 day ago

Foreigners Get Arrested For Working in a Syndicate & Collecting RM500 in Donations at a Ramadan Bazaar

It appears that there are syndicates who target the generosity of the public at Ramadan bazaars. In a recent report,...

Ft Mayor2 Ft Mayor2
News2 days ago

Miri Mayor Tells Local & Foreign Artists to Have Concerts in Sarawak if Cannot Hold in Peninsular M’sia

There have recently been a number of issues when it comes to the holding of concerts by foreign artistes. There...

My Post 1 2023 03 31T123922.844 My Post 1 2023 03 31T123922.844
News2 days ago

These 6 LRT Stations Will Be Closed Starting April 2, Here Are Your Alternative Travel Options!

To everyone using the Ampang/Sri Petaling LRT line to get to and from work, this is important for you. 6...

Ft Najib Ft Najib
News2 days ago

“He was the author of his own misfortune” – Najib to Stay Behind Bars After Court Dismisses Review

The Federal Court has just dismissed former Prime Minister, Datuk Seri Najib Razak’s application for leave to review his SRC...

My Post 1 2023 03 30T114439.130 My Post 1 2023 03 30T114439.130
News3 days ago

Elderly Man Who Was Allegedly Assaulted By MBPJ Officer To Face Obstruction Charge Tomorrow

Late last week, Malaysians were outraged as an elderly man was apparently assaulted by a Petaling Jaya City Council (MBPJ)...

Collage 17 2 Collage 17 2
News3 days ago

PDRM Will Fine Gatita Yan’s BF, But Can You Actually Set Your Car to Autopilot? Here’s What PDRM Says

Gatita Yan and her boyfriend got into trouble recently as the police are looking for them after a couple of...

Ft Lrt 2 Ft Lrt 2
News4 days ago

M’sian Man Gets Arrested For Going Down to LRT Track to Retrieve Earphones & Delaying Train

One of the worst things to come across on your daily commutes is a delay to the public transport system,...


Latest Videos