News: Malaysia in Need of 3.2mil Homes, Says REHDA

Apr 5, 2018

The Real Estate and Housing Developers’ Association Malaysia (REHDA) believes there is no housing glut in Malaysia as the country is short of 3.2 million homes, reported The Edge.

This comes as the country’s population is expected to grow by almost 2.8 percent to around 32.99 million by end-2018, while the National Property Information Centre’s (NAPIC) latest data revealed that there are only 5.1 million houses in the market.

“Today’s household size is shrinking to four people per household from 5.2 people five years ago and six over people 10 years ago. If you take the 33 million population and divide by four people per household, you will get about 8.3 million homes. But now we only have 5.1 million homes according to NAPIC’s data, so we are still short of 3.2 million homes,” explained REHDA President Datuk Seri FD Iskandar Mohamed Mansor at a media briefing on “Property Industry Survey 2H2017 & Market Outlook 2018”.

He noted that housing demand is also set to increase, on the back of expected improvement in global and domestic economies, market sentiment and the ringgit.

“So do we have enough homes for all households in Malaysia?” asked FD Iskandar.

The survey showed that 34 percent of the 200 respondents launched new projects totalling 15,082 units during the second half of 2017, of which 45 percent were sold within six months following their launches.

Properties costing between RM500,001 and RM1 million accounted for 45 percent of all unsold units, which refer to properties not sold in the last three years.

Most of the unsold units were found in Ipoh, Johor Bahru, Shah Alam, Seremban and Iskandar Puteri.

End-financing continued to be the main problem, with 82 percent of respondents pointing to it as the main cause of unsold units.

Meanwhile, 45 percent of rejected loans were for properties costing RM500,000 and below.

With this, FD Iskandar called on banks to review financing of homes and offer homebuyers with higher financing margins of at least 90 to 95 percent since the upfront cost of acquiring a home is a heavy burden for them.

“We fully agree that Bank Negara is the custodian of financial market stability of the country, but if we take away the office and retail units, financing for residential houses priced below RM500,000 must be addressed. Big data must also be there as we need to know which product to build, where to build and when to build,” he said.

Image sourced from Malay Mail Online

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