KUALA LUMPUR: “A terrace house has increased by 3-times the since 2010. Have your incomes increased that much?” asked Dr. Suraya to the crowd as she shared how housing affordability is typically measured. This is based on Median Incomes, Median Multiple and Median House Price. This is aggravated by the fact that the median income has not increased proportionally.
Post 2008, properties and home products exceeding RM1 Million skyrocketed. Research also shows that the average household can only afford one property in their lifetime.
So what can we do?
Dr. Suraya propagates that proper financing is the solution and the current approach of simply offering more loans and loan types is not the solution.
“Increasing the household income must be the goal and should be achieved by the means of productivity, not just to combat an overpriced home product”
She also shared that we can also estimate the core housing needs a whole lot better by knowing the different needs for different demographics. This will help determine where the Market Sector and Social Sector can play a better role to assist specific groups.
The key strategy forwarded by Dr. Suraya is that the solution must be achieved via creation of true affordability, not merely innovative or fancy financing options.
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