Purchasing a home can be challenging for first-time homebuyers, one of them being the budget for a new home.
Affordable housing is a pressing concern in Malaysia, as it is in many parts of the world.
The rise in income growth and urbanization, coupled with housing costs that outpace income growth, has led to a situation where many Malaysians find it challenging to secure suitable housing.
Let’s explore the multifaceted issue of affordable housing in Malaysia and delves into various solutions that are being implemented to address this challenge!
Challenges and the Way Forward
Housing affordability is a complex issue affected by various factors, including supply-demand imbalances, slow income growth, and lack of financial literacy.
The key lies in finding an effective way to balance housing quality, location, and financial affordability.
In a recent news by “The Edge Malaysia”, the data show that only 1.82 million to 2.18 million Malaysians (or equal to 24.1% to 28.7% of households) think house prices are affordable.
One thing that is entirely out of the expectations is that the top three states with the highest house price-to-income ratio are Sarawak, Sabah and Kelantan, but is not Kuala Lumpur, Selangor or Penang, which those states always classified as “housing price is too high”.
So, it is unsurprising that more and more Malaysians search for ” rumah mampu milik (affordable house)” on different channels.
Affordable Housing Schemes in 2023
The Malaysian government has recently implemented various affordable housing schemes in response to the affordable housing crisis.
These schemes aim to provide housing options for low- and middle-income households, enabling them to access decent homes without being financially burdened.
As of 2023, notable affordable housing schemes include the
1Malaysia People’s Housing Programme (PR1MA), the Rumah Mampu Milik (RMM) program, and the MyHome scheme.
Here is the 10 best affordable housing program in Malaysia.
These initiatives offer subsidized housing options and financial assistance to eligible applicants.
Furthermore, in 2023, Malaysia Prime Minister Anwar Ibrahim announced an affordable “Madani” housing scheme.
This “Madani” housing scheme is not just for B-40 but also M-40. Although we still don’t have much detail yet, the Malaysians really interested in it.
Private Developers: Stepping Up to Address Affordable Housing
Beyond government initiatives, private developers have also played a crucial role in addressing affordable housing needs.
Developers have created housing projects catering to lower-income segments in response to market demand and government incentives.
This includes developing compact and well-designed units priced more reasonably priced.
Additionally, some developers have embraced innovative construction methods that reduce costs and expedite project completion, ultimately contributing to affordability.
You can find more detail about private developer’s affordable housing projects here.
Which State in Malaysia Has the Cheapest Houses?
Housing affordability varies across states in Malaysia due to factors such as land availability, economic development, and property market dynamics.
Currently, some states are considered more affordable than others regarding housing prices.
For example, states like Perlis and Kelantan tend to have lower median house prices than more developed urban centres like Klang Valley.
According to the “Global Property Guide“, the state with the cheapest house will be Melaka, with an average price of just RM 216,156, and the next is Perlis, with an average price of RM 223,000.
According to them, Kuala Lumpur has Malaysia’s most expensive housing, with an average price of RM 741,445 during the year to Q3 2022, followed by Selangor at RM 501,085, Sarawak at RM 493,799 , Sabah at RM 486,634 , Pulau Pinang at RM 435,650, and Johor at RM 377,637.
| State | Average Housing Price (RM) |
| Kuala Lumpur | 741,445 |
| Selangor | 501,085 |
| Sarawak | 493,799 |
| Sabah | 486,634 |
| Pulau Pinang | 435,650 |
| Johor | 377,637 |
However, it’s important to note that while house prices might be lower in certain states, other factors like job opportunities, salary and amenities should also be considered when evaluating overall affordability.
Conclusion
Whether for rent or own use, this issue of affordable housing in Malaysia requires a comprehensive and collaborative approach.
Government initiatives, private sector involvement, and innovative construction methods all contribute to making housing more accessible to a wider population.
By addressing these challenges head-on, Malaysia can make significant strides towards providing its citizens with the opportunity to secure safe, comfortable, and affordable homes.
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