REAL estate professionals in Malaysia believe that the Government needs to address issues concerning the rising cost of property, according to an online survey conducted by Kuala Lumpur-based real estate technology group Juwai IQI.
“Malaysia has a relatively young population and workforce, and this creates strong demand for affordable residential properties in the major metropolitan areas,” said its co-founder and Group CEO Kashif Ansari in a statement today (Aug 23).
“People are moving from rural areas to Kuala Lumpur, Selangor, Penang and Johor, but property prices in these areas have increased over the past year five years.”
According to Kashif, real estate professionals work with homebuyers and are thus well aware of the challenges that they face.
“Close to 60% of real estate professionals in Kuala Lumpur and Selangor want more measures to address the cost of housing.
“It is no different for agents in Penang (50%), Sabah (57%) and Sarawak (55%).”
Meanwhile, according to Research for Social Advancement (REFSA), the price of the average home was equivalent to about 4.7 years of per capita income in 1990 and today, it has nearly doubled to 9.5 years.
Between 1990 and 2019, the average home prices have increased 5.6 times or a 460% capital appreciation.
Malaysians who bought their own homes before prices climbed have been able to build financial security for their families.
Those who are able to buy today will benefit from future price gains.
“The Government has already deployed several policy measures that have helped first-time and lower income buyers,” Kashif pointed out.
“The process of urbanisation and the global wave of rising asset costs have pushed prices up even higher than predicted.
“The new Government will have a lot on its plate, especially in addressing the COVID-19 pandemic. We believe the Government will also look for measures to support home buyers,” he concluded. – Aug 23, 2021
