Property market Malaysia? 500,000 more homes to be built under 12MP. Wow.

Categories: ABCs of Personal Finance, Malaysia

Property market Malaysia? 500,000 more homes to be built under 12MP. Wow. Info source: Article in theedgemarkets.com

Demand and supply dictates that when supply is increased too much without corresponding demand, then the prices will fall so that more demand can be created. Well, please do not think too much. These new properties targeted at the B40 and the M40 will not be completed within the same year. It’s impossible. Let’s just think that it can be completed in maybe 5 years? Even this looks extremely daunting because 5 years means every year 100,000 homes have to be built.

Do you know how many units of homes do we we actually already have? Well, high-rise wise, there’s already close to 1,000,000 units in 2020. Meanwhile 70% of all properties in Malaysia are landed and only 30% are high-rise units. Charts as below:

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Chart source: propertyguru.com.my

Do you know which ones have a higher price increase? Landed homes better? Maybe you are right. High-rise units rise have a higher price increase? You may be right too! Do read on for the details.

Property Price: Which ones rise faster? Click here to read yeah.

Why are so many new homes being built?

We do not need any property experts to tell us. Just ask 10 of our younger friends, those who are below their 30s. How many of them have a home today? More than half would be without one. Would they want to buy one? More than half would and yet they would say that the properties nowadays are not affordable, not what they want and just do not have the things they wanted or the amenities are not that nearby. These are the reasons and more but this is also why we have overhang and at the same time, we needed more affordable properties to be built.

Just BE SURE there’s demand BEFORE building yeah

If we have learnt something from overhang numbers here in property market Malaysia, it is to build only when we are certain of the demand. PLEASE stop building just to make up the numbers and make the minister look good. Enough lah. Do a proper survey based on income vs price for the type of homes in the area.

This is the time for the government to really do something to help the B40 and M40 households in owning a home. This is not the time to let the property developers who got the project to earn lots of money at the expense of the buyers. Please make it right yeah. Many hundreds of thousands of households in need of a proper and affordable home needs it. Thank you.

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