Get ready. Building 1,000,000 affordable homes in 10 years is doable

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You know, there is still that worry that affordable homes, by the sheer number of them will cause the collapse of the property market. My personal opinion is that it will not because the targeted group and the current owners of properties are different. However, would it cause the number of unsold units to move upwards? That’s a possibility unless what was built was really what was needed and people are buying them. Else, it’s just providing but there’s no buying and of course this leads to over-supplying. It’s not a good situation to have yeah.

This is why these 1,000,000 homes must be built with coordination with relevant ministries to ensure these homes will be purchased. The current unsold units are already due to a mismatch in product versus pricing and needs. As for the final question of whether the government could really complete these 1 million units, let’s listen to what REHDA has to say.

Article in The Real Estate and Housing Developers’ Association Malaysia (REHDA)’s vice-president, Datuk N K Tong said “One million (affordable) homes in 10 years is achievable if there is enough resolve and I think that this government has that. However, I wouldn’t expect the first 100,000 homes to be delivered within the first year, because from a practical point of view, the gestation period for the development can take up to four years.” He said that the government has been engaging with stakeholders, including developers, the house buyers association and various government bodies. He concluded of the plan by saying, “If it is well coordinated, it will be achievable.” Article in

For the question of whether these affordable units are worth buying, the answer is also a yes though it depends on what the actual purpose would be. If it’s for own stay, sure! If it’s for quick profits, nope. If it’s for AirBnB, better not okay, this is for people’s housing and many people needed them. If we still have no plans on what to do with it, perhaps the answer is a maybe, depending on whether one could pay rental for the place we are staying maybe because it’s near to the office and at the same time continue to pay for that affordable property which we have no idea why we bought it in the first place. 😛

Last but not, that question of whether the prices will rise, it depends on the value of money. If we believe the value of money will stay stagnant, then the prices will stay stagnant. If we believe the value of money will drop over time, then the property prices will rise over time. This is why properties are also known as a hedge against inflation. Happy viewing.

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Article written and edited by Charles. News article summarised by Dina Batrisyia.

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