Homes Beyond the Reach of Most M’sians

PETALING JAYA: Soaring property prices in city areas, coupled with their low salaries, have made owning a home at their preferred locations an unattainable dream for young people, which is why many continue to rent.

According to the National Property Information Centre, the average price of a condominium or apartment in the Batu district in Kuala Lumpur is RM735,000, while a similar property in the Setapak district, also in Kuala Lumpur, costs RM430,000.

In Selangor, a terrace house in the Petaling district costs RM750,000, while the same property type in Sabak Bernam, which is on the outskirts, is priced at RM330,000.

A bank manager who requested anonymity said workers aged between 24 and 30 typically have lower incomes and cannot afford to buy properties in central areas.“If you are working in Kuala Lumpur and looking to buy a property nearby but are earning, say between RM2,400 and RM4,000 (monthly), you could not afford any property there,” he said.“If the price of the house is around RM500,000, you have to earn at least RM4,600 to own it.”

He said that typically, banks would request that they apply for a joint loan with their partner or parents.

He said banks also look into the debts people have, while the maximum loan eligibility is up to 70% of their monthly income.

“Some may have a car loan, a student loan and a credit card (debt). So, what’s left of their income for loan eligibility is not much to afford a house priced between RM350,000 and RM400,000.

Credits: The Star - Published 30th October - DIYANA PFORDTEN

https://www.thestar.com.my/news/nation/2024/10/30/homes-beyond-the-reach-of-most-msians

Our Editors View:

This is a double edge sword in Malaysia's property market, on one hand the locals are having difficulty to purchase the properties locally due to lack of funds, whereas due to international demand, foreigners with purchasing power are able to snag up the properties easily as it has still not reached their full market potential. It can be seen that the Malaysian property market has further potential than it has realized and it is an opportunity for investors looking into the market for future returns.

Disclaimer: Our Editor's View are our personal opinions and are not financial advice. Our team are not responsible to any outcome of our views to our readers, in particular at taking our opinions into their investment strategies or purchases in relation to this matter.