Twitter Icon Facebook Icon Google Plus Icon RSS Feed Icon Linkedin Icon

Highest level of Malaysian properties remain unsold due to rising prices

Malaysia

Malaysia’s housing affordability hasn’t improved despite a slowing market, property consultancy firm Rahim & Co International Sdn Bhd has revealed.

According to Rahim & Co, while the number of property transactions has fallen, property values didn’t drop by much – meaning that affordability is as tough as ever.

“An average terraced house would cost Malaysians 5.3 years of their household income,” commented Sulaiman Akhmady Mohd Saheh, research director at Rahim & Co. He added that between 2014 and 2016 there was a slight improvement in housing affordability as the income level of households increased. However, in 2016 and 2017, average income levels grew at a slower pace than house prices in Malaysia, leading to properties being being pulled out of reach for many prospective buyers.

A slow market

It is perhaps no surprise then that the number of unsold residential properties in Malaysia is now at its highest level in a decade. According to Malaysia’s central bank, Bank Negara Malaysia, a total of 146,497 homes remained unsold during the second quarter of 2017, up from 130,690 units in the first quarter. Almost 82% of the unsold units were priced above 250,000 ringgit (around £45,700), which is expensive in relation to average wages in the country.

On average, an affordable property in Malaysia for a family would be priced at up to 282,000 ringgit (£51,400), whereas the median home price during the period according to the report was 313,000 ringgit (£57,000). With the median national household income in Malaysia being just 5,228 ringgit (£953), the prices are out of reach for many families.

Between 2007 and 2016, according to the bank, house prices increased by 9.8%, while household income only went up by 8.3%. Additionally, new-builds in the region have been made up more of high-end properties than affordable ones since 2012 according to the report, which has further exacerbated the situation.

The post Highest level of Malaysian properties remain unsold due to rising prices appeared first on BuyAssociation.

Source: BuyAssociation

No Comments »

No comments yet.

Leave a comment