KUALA LUMPUR: Affordability remains a major issue in the property market, with the median house price at RM335,000 while average monthly salary at around RM3,000 to RM3,500.
Kenanga Investment Bank Bhd (Kenanga Research) said in its note that this gap challenges many Malaysians, particularly first-time home buyers under 35 years of age.
National Property Information Centre’s (Napic) data in the second quarter of this year shows that residential overhang is now at 127,180 and concentrated in Johor, Kuala Lumpur, and Selangor.
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This is a 3.0 per cent increase from 125,362 units in the first quarter.
While 63 per cent of new properties are priced below RM500,000, a significant portion of overhang units are priced below RM300,000.
“This suggests that despite the efforts to introduce more affordable housing options, many Malaysians, particularly younger buyers, still face challenges in purchasing homes due to insufficient income levels, difficulty in securing home loans, and rising cost-of-living expenses,” Kenanga Research said in a note.
According to the firm, increasing overhang units, particularly those priced below RM300,000, highlights the affordability crisis even in this lower price range.
It added that the concentration of overhang units in Johor, Kuala Lumpur, and Selangor suggests that the imbalance in housing demand and supply is more pronounced in urbanised regions, where land costs and demand pressures are higher.
Therefore, Kenanga Research noted that the gap between available housing and what first-time homebuyers can afford may call for more targeted government interventions.
Source: NST Online
