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100,000 affordable homes per year to be built. (Yes, 100k)

100,000 affordable homes per year to be built. (Yes, 100k)

I shared with a room of over 150 property investors on 5th Jan (Sat) that Malaysia is actually facing a shortage of homes and not really an oversupply of homes today. Fortunately for me, this room of people were all members of the KL & Selangor Property Investors Club. (Someone told me that combined, the club members own about RM1 billion worth of properties). I could see they believe me. Anyway, our Housing and Local Government Ministry has reaffirmed this. Our new government will build 1 Million of new homes in Malaysia within 10 years. In other words, 100,000 units of affordable homes every year beginning 2019. Here’s that article in Edgeprop.my So, the minister Zuraida Kamaruddin has directly confirmed that there is no oversupply. Else, everyone may think the government is trying to sink the property market?

Zuraida shared that these units are for the low income earners to also become house owners. Her ministry would coordinate all housing projects under Syarikat Perumahan Negara Bhd (SPNB) and would build 100,000 units of houses a year  beginning this year. She said, “The 100,000 units will comprise affordable homes for all, especially those in the B40 group so that they, too, can each own a house.” For the financial commitment, Zuraida added, “Those in the low income group can afford to pay the monthly instalments. Their problem is coming up with the deposit payment, so we are discussing with the financial institutions to find a solution to this. The ministry is also discussing with Bank Negara and housing investors that agree to come forward to provide financing scheme.” Do refer to the article in Edgeprop.my

To add to the topic on unsold units which seem to be the bone of contention about whether there’s an oversupply, do refer to the chart. Actual unsold units by states are clearly stated too. Selangor and Kuala Lumpur, where unsold properties are concerned has a much lower percentage when compared to the national average. This shows that Zuraida is also right when she mentioned that the government’s 100,000 unit will not add to the glut of unsold units of today. I have to say that I agree as long as these 100,000 units being built was due to applications for it well in advance instead of building first and try to sell later. There has been many examples of some affordable homes being built in locations not loved by people. Let’s not repeat that yeah my dear Minister? Happy following.

written on 7 Jan 2019

Next suggested article: H1 2018 launches are mostly below RM500,000 units. Affordable enough yet?

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