Malaysian house prices remain unaffordable

Bank Negara Malaysia (BNM) has reported that the housing market activity remained strong after a better outturn in the first half of 2019.

According to BNM, Malaysian house prices observed a moderate growth in the third quarter of 2019 due to a steady demand for affordable high rise-properties.

Income growth,formation of new households, as well as the various initiatives to reduce the cost of home ownership had further attributed to 2019’s housing demand

However, in relative to income, Malaysian house prices continues to remain  unaffordable due to a pronounced and prolonged mismatch between demand and supply of residential property.

The central bank has also pointed out that risks of a sharp correction in house prices will continue to be mitigated by firm demand for housing, particularly for properties priced below RM 500,000.

In terms of demand for affordable housing units, BNM has observed the segment to continue outstripping supply by a wide margin, indicating room for further adjustments in prices, particularly for new housing stock.

However, supply re-balancing, on the other hand has been underwhelming.

Average volume of newly-launched residential properties below RM 300,000 has declined in recent quarters, despite strong demand from households.

According to BNM, latest date also indicates a declining share of new launches in this property segment.

The central bank believes if the trend continues to persists, future risks of price adjustments could increase again due to affordability constraints.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Halal Street UK and Alliance Islamic Bank sign MOU to tailored programmes to SMEs

Halal Street UK,  an online store for Malaysian products in the United Kingdom has signed a multi-year Memorandum of Understanding with Alliance...

Shopee and Visa sign five-year strategic partnership to offer MSMEs more digital opportunities

E-commerce platform, Shopee and Visa has announced a five-year regional strategic partnership that will encourage greater participation in Southeast Asia’s digital economy,...

MADX Panel selects IBM Cloud to offer enhanced digital services to Malaysian enterprises

IBM has announced that MADX Panel, the leading Malaysian fintech software solutions company, is implementing IBM Cloud solutions to improve digital services...

AirAsia Digital partners with Google to launch Redbeat Academy

AirAsia Digital, in partnership with Google, has launched the Redbeat Academy as part of their continued digital transformation journey.

Better e-commerce service for higher consumer spending

By Farhan Kamarulzaman, As the usage of e-commerce platforms by Malaysians is on the increase during the Covid-19 period,...

Must read

Unprecedented times with Covid-19, business decision makers prepare for a soft landing and focus on employee retention

By Andrew Seow, Regional General Manager, Rimini Street Southeast Asia and Greater China, The Covid-19 pandemic is attacking health...

Caring for young hearts

By Dr. Marhisham Che Mood, Head of Paediatric and Congenital Heart Centre (PCHC) & Consultant Paediatric Cardiologist, While heart...

PropTech and the pandemic

By Adrian Un, CEO, SkyBridge International Digitisation and PropTech (property technology) have been buzzwords in recent years, but following...

Empower local agility to unlock new business models post-Covid-19

By Scott Hensarling, Senior Client Partner and Tobjorn Karlsson, Senior Client Partner, Korn Ferry, 2020 has challenged many assumptions...