Research On Housing Affordability in Malaysia

 The Malaysian government has set up several programs to help Malaysians purchase their own homes. Some of these housing loan programs were especially made by the government to help low-income Malaysians.

In a paper presented at the 3rd International Conference on Business and Economic Research Proceeding, PuteriAmeeraMentaza Khan, RosadahMahamud, and Dr.NorhayaKamaruddin of the University Teknologi Malaysia said that the continuous rise of house prices has affected the ability of people to buy homes. The authors say that the problem affects first time home buyers aged 24 to 35 years the most.
 
In the study entitled “An Overview of Housing Affordability for First Time Home Buyers in Malaysia,” the authors point out that house prices have steadily increased from 2000 to 2010 while income levels had a smooth decrease in income levels. With this trend, they described home ownership among young people in urban areas as being “impossible.” The authors concluded their study by saying that the problem of unaffordable housing in city centres can be addressed by the provision of affordable homes in areas away from the city coupled with the provision of an efficient transport system to overcome the high transport cost.
 

Government Policies and Programs To Help Home Buyers 

The Malaysian government allocated RM 320 million to Syarikat Perumahan Negara Berhad in the 2013 budget. The allocated funds will go towards the construction of 1,844 low- and medium-cost housing. These units will cost between RM

110,000 and RM 250,000. The National Housing Department also allocated RM 543 million that will go towards the construction of 20,454 units of public housing that are priced well below the market rate.
 
Another program by the Malaysian government is the My First Home Scheme (Skim RumahPertamaku) program that is aimed at helping young adults buy their own homes. The housing loan program is open to Malaysian citizens aged 35 and below who earn RM 5,000/ month while the gross income of joint borrowers should not exceed RM 10,000/ month. The eligible properties for this program have a maximum property value of RM 400,000. Those whose loan applications were approved could get their 10% down payments waived under the program.
 
Another program by the Malaysian government to help those in the mid-income bracket is the 1Malaysia People’s Housing Programme. Bernama reported that 80,000 more housing units will be built through this program with an allocation of RM 1 billion. Prime Minister Datuk Seri NajibTunRazak said each unit under the program would cost 20% lower than the market price.
 
The announcement of 80,000 more housing units to be built under the 1Malaysia People’s Housing Programme was made under a broader announcement for the construction of around 223,000 new housing units aimed at helping low- and middle-income groups to own homes. Of this figure, 16,473 units will be built by the National Housing Department through the People’s Housing Programme. This part of the project has an allocation of RM 578 million.