When everyone already owns a home, then demand for home stops. Well, at the moment, there are still many without a home and if we look at the number of people entering the workforce, then we should realise there’s even more without a home. Most of these people are moving to the bigger cities for the very first time.
For some of these new working professionals, they are lucky as their parents would be helping in their journey to own a home. Demand for homes remain very high and the proof would be the applications for the People’s Housing Projects (PPR) coming from the B40.
Article in themalaysianreserve.com The Kuala Lumpur City Hall (DBKL) has received 38,145 applications for the People’s Housing Projects (PPR) and Public Housing (PA) up until last January. Kuala Lumpur Mayor Datuk Seri Mahadi Che Ngah said, “Of the total, 14,412 applications have been offered for the housing units until March.”
He said, “We are completing the development project in Sungai Udang, Segambut, involving the construction of 1,251 units, which is expected to be completed next September. We will also build about 760 units in Jalan Semilang, Cheras, as well as await approval for the project in Taman Desa.” Do read the article in full here: Article in themalaysianreserve.com
Overhang and demand for homes are different
Anyone equating overhang units with less demand for homes or a collapse in demand for homes can continue to think like that though it’s wrong. Just remember to back up your thoughts with the right action. Arguing as such is exactly the same as a new smartphone model which looks extremely ugly and everyone refuses to buy them and suddenly everyone thought the demand for smartphones have collapsed. Erm…
PPR units is also not the same as demand for residential properties
We do have Malaysians who really do need assistance to have a home, even if does not belong to them. Once we look around the working population getting married, both are professionals, then the demand for property will continue to happen. Once we include the families which are growing and in need of a bigger home, then the demand for property will continue. Once we look at the older folks who need a smaller home since their kids are no longer staying with them, then there’s also demand for new homes. Happy understanding that these are separate issues.
Next suggested article: Rising demand means rising home prices? Demand vs Supply?