While an average middle class member working in Kuala Lumpur can still afford a house of RM 500,000 to RM600,000, a Senior Admin living in Selangor can hardly afford a home above RM320, 000 and this drops even further in states like Kedah or Kelantan, where the affordability value drops all the way down to RM100, 000 to RM 150,000.
Sourced from Malaysian Propenomy – Data from the Department of Statistics Malaysia (NAPIC)
Based on the statistics from 2014, an average Malaysian household consist of 4 members. Out of which, at least 2 are working adults. The last column depicts values that are surely more realistic and in line with actual happenings. In reality, once we calculate the price per square foot generated by the values above divided by a per square foot house size as currently offered in the market, the sad truth is that 4 members per house hold needing at least 3 bedrooms and 2 bathrooms or 900sqft of livable space, would be forced to reside in a home that is less than 600sqft. In other words, homes that are currently available in the above livable size range are actually unaffordable.
There are several ways to look at this matter. The most obvious will be to look at it from a consumer or an end user point of view, where the blame points to the ‘greediness’ of certain developers who insist on making extremely high profit margins. For many years now, the House Buyer Association (HBA) has been voicing out these concerns about developers as well as investor clubs that manipulate and amplify certain developments to their investors without proper feasibility studies or research conducted, for their own personal gain. On the other hand, developers have been rightly complaining that the government should provide more for the lower income bracket, pointing them towards emulating the Singaporean Authority who has taken care of Public Housing in an exemplary way.
The third spoke to the wheel is the Government, who complains that a number of ‘house buying tools’ have been studied and placed into practice but there is neither response from the public nor developers. ‘I have to say, I have been working for developers for a long part off my adult life and more than once have I encountered this problem. This is why I’m doing my best to use logic and common sense to look into a possible solution to this problem. If we pretend to find a solution that will make everyone happy, then we are lying to ourselves. The best is to get all parties to talk with each other in a practical, non – political way and work together to find and actuate a ‘’practical solution’’ – Dr. Daniele Gambero.
This article is a summarized excerpt taken from the Malaysian Propenomy. To read more, get a copy of the Malaysian Propenomy by Dr.Daniele Gambero available at bookstores near you.