Bank Negara: Homes Are Just NOT That Affordable

The Central Bank has unveiled a "Housing Watch" website revealing that homes in Malaysia are not that affordable after all.

The Bank Negara Housing Watch website show that only 20% of new Malaysian housing launches in the first quarter of 2017 were priced below RM250,000, down from 33% between 2010 and 2014. The bulk of new homes cost between RM250,000 and RM500,000.

It also revealed information that financing remains available for eligible borrowers, with 72% of housing loan borrowers are first-time owners of affordable homes.

Houses in KL, Penang and Sabah were unaffordable based on the income levels of households.

The situation was worse in key city centres. House prices were most unaffordable in Georgetown which had the highest median price of RM600,000 and the lowest median income level of RM4,792. The site’s data revealed that actual maximum affordable house price there is at RM256,000.

KL City is not any better. The actual median house price in KL City was RM560,000 while the maximum affordable house price was RM385,000.
Is it a matter for affordability or inequality? We discuss this.

0:11 - The Central Bank has unveiled a "Housing Watch" website revealing that homes in Malaysia are not that affordable after all.

6:09 - Property developers are saying affordable housing also has to take into account rising costs.

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