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Survey: Malaysians worried about rising costs, want affordable homes

by October 18, 2016 General

The average household looks to spend between RM200,000 and RM300,000 on a property. — Reuters picThe average household looks to spend between RM200,000 and RM300,000 on a property. — Reuters picKUALA LUMPUR, Oct 18 — Malaysians are concerned about the rising cost of living and would like a reduction in income tax, more efforts to curb crime and delivery of affordable housing schemes, according to a survey by Malaysia.

Part of the REA Group, Malaysia is the country’s main property portal, offering comprehensive property listings, related real-estate services and project marketing services.

While the nation waits for the Budget 2017 to be announced on Oct 21, Malaysia has conducted an online survey on approximately 300 respondents, highlighting the big issues affecting Malaysians, REA Group Chief Operating Officer–International Arthur Charlaftis said in a statement.

“We’ve seen significant increases in the cost of living in Malaysia, including price increases in fuel, toll-ways and public transport, as well as the introduction of the Goods and Services Tax last year, which is having a significant impact on Malaysian families,” said Charlaftis.

The survey results also demonstrated that Malaysians were hoping to see Budget 2017 provide more affordable housing schemes.

“Malaysia has a relatively young population and workforce, and there is strong demand for affordable residential properties in major urban centres.  

“With transport costs also increasing, this young and growing segment of property seekers are looking for a property in the cities, often close to their workplace,” he added.

According to the State of Households II Report published by the Khazanah Research Institute (KRI), Malaysia’s median monthly household income in 2014 was RM4,585 while the average monthly income was RM6,141.

This means the average household looks to spend between RM200,000 and RM300,000 on a property.

Meanwhile, REA Group Chief Economist Nerida Conisbee said there is high demand for properties within the price range, and there’s a real opportunity for the Government to incentivise developers to build more of these types of properties.

“Residential properties priced at RM500,000 and above are only within the reach of households earning at least RM15,000 per month, which equates to six per cent of the Malaysian population.

“The Government could also look to other Asian countries where affordability has been an issue, such as Singapore or Hong Kong where they have intervened to provide more affordable housing,” Conisbee added. — Bernama