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Monday, 4 March 2019

Affordable Housing in Malaysia

ummul azkee

Affordable Housing in Malaysia

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What is the interpretation of the term “affordable homes”? Nevertheless, what defines whether a house is affordable is based on the income of the targeted consumers. According to Bank Negara, an affordable home in Malaysia which is based on the monthly median income of RM4,585 and the annual median income of RM55,020, is between RM165,000 and RM242,000. Housing is a basic right of consumers. The government plays an important role in ensuring all Malaysians have access to affordable homes by introducing schemes such as RUMAWIP which offers affordable homes for middle income groups who live and work in the Federal Territory. When it comes to buying a property in Malaysia, Kuala Lumpur is would always be the first to come to mind. However, Kuala Lumpur has been found to have the most expensive real estate in the country, therefore, it is not easy for the average income groups to buy a piece of property in the capital city. So, if Kuala Lumpur is out of the question for you, where else can you consider when it comes to property purchase? Here are four major states in Malaysia and their current residential property price range and outlook.

1. Penang
Penang which is considered as a fast growing state, is hunger for a more solid yet dynamic affordable housing scheme to assist the buyers in different aspects. It is not surprise that the cost of a 5-bedroom bungalow in the town of Batu Ferringhi in Penang is the same to the price of houses in town areas in the centre of Kuala Lumpur. Until we are fitted with a more wide-ranging scheme, the coming year will continue to be challenging for affordable housing buyers. Property market will always go up and down, the economy will always vary. Still, there will always be right investments to make. For long term purpose, placing money into properties in Penang is a sound strategy because land is the most valuable goods in the island state. You must always bear in mind that property is a long term investment and be crystal clear with your financial needs and goals.

2. Melaka
Melaka has been a tourist’s attraction spot ever since it became a UNESCO World Heritage Site in 2008. Melaka has been recognized as the state with the most affordable housing with prices ranging from as low as RM80,000 compared to northern states. Besides that, properties in Melaka which are going at RM120,000 or RM250,000, would be worth RM470,000 and RM700,000 respectively in other states. Reports have also shown that a good number of new developments are coming up in Melaka. The acquired land is intended for a mixed development project comprising of a hotel, serviced apartments and retail units, which will no doubt be beneficial to the state’s economy in the long run.

3. Johor Bharu
Johor Bahru is the southern economic hub for Malaysia, partly due to its nearness to Singapore. It has also become an attractive residential location for expatriates who work in Singapore. Prices of property in Johor starts at around RM300,000 for a 3-bedroom condominium and can go as high as RM2.3 million for newly developed areas with more facilities such as golf courses, commercial outlets, and top-notch security measures. Whether you are looking to rent or to buy a house, property prices in Johor are cheaper compared to Kuala Lumpur. This is no doubt a good sign for those who are considering to settle down in the state.

4. Negeri Sembilan
With With prices of homes in Klang Valley (KV) on the rise, Seremban is now considered an ideal place for double income professionals/couples and young families. Besides housing Malaysia’s first private cancer centre, the NCI Cancer Hospital, Nilai is also home to Nilai University, INTI International University, Manipal International University, Universiti Sains Islam Malaysia and the Islamic University College of Malaysia. It is not surprising that Nilai serves as a good population catchment, as there will always be students and teachers looking for places to rent/stay.

Based on the comparison above, Melaka is considered the most affordable state when it comes to purchasing property or as a state to live in. This is followed by Negeri Sembilan, Johor and lastly, Penang, both of which have been reported to have the most expensive housing rentals in Malaysia next to Kuala Lumpur and Selangor.

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