by Ken Lim
Housing affordability is a common issue not only in Malaysia, but also in many other countries such as Singapore, Hong Kong, China and Australia. Recently I have also read the latest news about India inviting Malaysian developer to build affordable homes in India.
In some developed countries like Japan and United Kingdom, the availability of affordable homes, usually within the proximity of transportation hubs and at the same time linked to job distribution, is severely reduced due to rapid regional urbanization and growing population density primarily focused in a particular area. Today, they are still dealing with the same issue as we progressed with time.
Malaysia is only getting off the starting block. As our young nation continues to evolve and grow, it is a matter of importance for us to address the housing needs due to the distinctive disparity in household income. Affordability issue will always exist yet if the right and effective strategy is implemented, the implication can be less severe than expected.
While both government and private sectors have formulated various plans to deliver affordable housing, it seems to me that the people are not as excited as they should be. I can confirm this from the level of engagement in PenangPropertyTalk.com. A RM800K condominium in Tanjong Tokong has attracted twice more traffic and Facebook sharing compared to a RM300K affordable housing project in Mount Erskine. News about Ikea coming to Batu Kawan had almost thrice the traffic and Facebook sharing compared to affordable housing plans within the vicinity of Batu Kawan.
One of the possible reasons could be due to the slower pace in terms of paradigm shift of the mentality of the people with respect to the idea of affordable housing in Malaysia. The general public perception of affordable homes is akin to aging dilapidated flat with little or no facilities at all. Many still harbour hopes that the government will be able to make the private homes more affordable, having the new private housing development to reduce their price within the range of 10-20% so that affordability is within grasp. But seriously, do you think that is a remote possibility?
Government and Bank Negara cooling measures are meant to control the housing price so that speculation activity would not reach an unhealthy level. However it is unlikely to reduce housing price to a great extent unless we are talking about an economy crisis where the stock market takes a plunge, many MNCs closing down, and a lot more people losing their hard earned jobs.
At this early stage, the introduction of affordable housing scheme is just not good enough. Instead of just waiting for people to accept it, a substantial effort should also be spent on marketing in order to bring the awareness to the people in a proactive manner. Today, affordable housing is targeting those professional workers with a monthly household income up to RM10,000 per month. They are not just looking for home with four concrete walls. It is a living solution that everyone is seeking. A place where they can stay in a comfortable manner, with primary basic amenities within close proximity that can serve their daily needs, particularly in getting to work as well as fulfilling the education needs of their children.
Financial institutions, developers and government can definitely work together to do much better by providing more affordable options, better first home ownership scheme and not to forget a stringent regulation to ensure the units are primarily meant for home owner ‘s occupation however not to derive profitability from rental yields.
For Penangites, it’s time for us to rethink all the possible affordable options available. There are also plenty of decent options available in the secondary market, which we should undertake to purchase before it gets out of our reach in the foreseeable future.
– Ken Lim
(Founder and Principal Reviewer, PenangPropertyTalk.com)