PR1MA houses at KL expo still beyond average salary

Melati A. Jalil Melati A. Jalil Updated 6 years ago · Published on 26 Mar 2018 7:00AM · 5 Comments

Prime Minister Najib Razak visiting the PR1MA expo at PWTC in Kuala Lumpur on Saturday. His administration promised to build one million affordable houses in 2013. – The Malaysian Insight pic by Seth Akmal, March 26, 2018.

THE Najib administration’s 2013 promise to build one million affordable houses costing RM100,000 to 400,0000 has hit a snag – the target market earns enough only to buy houses worth RM250,000 or less.

1Malaysia Housing scheme chief executive officer Abdul Mutalib Alias said the segment is 60% of the available supply of affordable housing offered at a major government-sponsored expo last weekend.  

But many buyers felt frustrated at the lack of units below RM250,000 at the expo, which is being held weeks before the ruling Barisan Nasional seeks another mandate.

Muhammad Faiz of Taman Desa, Kuala Lumpur was one of these buyers.

The engineer was looking for a house ranging between RM180,000 and RM200,000 at the expo but the lowest price he could find was a RM230,000 apartment.

The 28-year-old said he couldn’t afford something above RM200,000, as his family only had a joint monthly income of RM5,000.

“The reason I came today is to survey the house prices… I prefer a house that is close to my workplace in Ampang.

“Houses that are between RM250,000 and RM300,000 are still expensive for a person like me, who is working in the private sector.”

The sentiments echoed what real estate experts have said in the past, that houses above RM250,000 are beyond what many Malaysians can afford.

Bank Negara also found that the median house price of RM313,000, as measured in 2016, was out of reach for many Malaysians.

The central bank said there was a mismatch between demand and supply in the housing market.

For instance, from 2016 to the first quarter of 2017, only 24% of new launches were priced RM250,000 or less – a range that 35% of Malaysian households could afford.

It estimated that the maximum affordable house price in the country to be RM282,000 based on the housing-cost burden approach.

Dreams out of reach    

Touted as the nation’s largest housing expo, the “One million dreams housing expo” offered more than 600,000 houses and apartments for sale.

They included 267,640 PR1MA units, 50,030 units from the Urban Wellbeing, Housing and Local Government Ministry, 99,974 units from Syarikat Perumahan Negara Bhd, 51,173 units from Federal Territories Affordable Housing and 141,774 housing units under 1Malaysia civil servants’ housing programme.

Lim Lee Yean, 57, who was looking for a house for her son, could not find one within his budget of between RM100,000 and RM200,000.

“My son has been working for seven years, his income is around RM4,000 per month. For me, houses that are more than RM200,000 are expensive, I’m looking for a RM100,000 house but they are all sold out,” she said.

Retiree K. Yohanathan, 70, is planning to help his children buy their first house by contributing to the down payment.  

“Affordable homes should be below RM250,000 because even if you are earning RM5,000 a month, it will be difficult for you to own a house due to the high cost of living,” he said.

“I’m thinking of helping my children with the down payment,” he said, adding that his kids did not earn enough to buy their own house.   

Wan Muhammad Fikri,30, wanted the government to reconsider the price range for affordable homes, saying many people his age couldn’t afford to buy their first property.

“I can’t afford a RM300,000 house, even RM250,000 is pricey. But I have to consider a house at this price because I have been waiting six years to buy a house for my family.”

The government is pouring in RM2.2 billion under Budget 2018 to help its agencies build more affordable homes. RM1.5 billion is for PR1MA to build more thn 210,000 units priced at RM250,000 and below over the next two years.

The budget will also be used for 17,300 low-cost units under the People’s Housing Programme (PPR) and 3,000 units of People’s Friendly Home under Syarikat Perumahan Nasional Bhd (SPNB).

Khoo, an administrative officer, said a RM300,000 house was the maximum he could afford.

“RM300,000 is the limit because of my salary, I prefer a landed house but if there are no other options, I have no choice but to settle down with what I can get.

 

“I don’t think I can wait any longer because houses are getting more expensive, the prices are not realistic any more,” he said. – March 26, 2018.

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Comments

  • This 'KLEPTO-INEPTOCRACY' methodologies and 'analytics' on home affordability are appallingly flawed, erroneous and out of touch with ground realities. They have absolutely no understanding of the earning dynamics of the populace distorted by infusion of foreign labour, inflation, currency devaluation, institutional corruption etc. They have fashioned over the decades a 'debt-bondage' economy that has imploded onto itself supporting a fascist monopolistic economy.

    Posted 6 years ago by Arun Paul · Reply

  • Just simply build homes that people can reasonably afford, & come up with schemes to dispose of units already built..

    Posted 6 years ago by MELVILLE JAYATHISSA · Reply

  • Housing is a very unique commodity - it is a fundamental Pavlov human need - shelter BUT it is also higher order consumer good, AND worst its an ASSET. When central banks inflate assets to help the economy, it becomes primarily an asset and does not perform a human need - except to generate income - if you are lucky to get that income. The reason why it fails is CLASSIC NAJIB MEDIOCRITY - he does not have the brains to understand his pretentious works against him that he knows anything or can really do much to fix the problem He needs to generate income, social welfare income that matches the asset rises - NOT used to sell land to bail his wanton-spending wife and friends out

    Posted 6 years ago by Bigjoe Lam · Reply

  • Is it really Najib and UMNO/BN fault? Mediocrity is very common BUT do they deserve the KARMA? ABSOLUTELY..

    Posted 6 years ago by Bigjoe Lam · Reply

    • Look at the way you think? Look at the way you write? And you have the gumption to call najib mediocre and pretentious ? Bugger, when you hate najib, is it self hatred - do you see yourself in him and hate because he is just like you? Coz hello, have you seen the way you reason - you are the epitome of mediocrity and pretension yourself .... rightfully, people like you should like najib , because najib is just like you .... if we hate someone who is like us it can only be because of jealousy
      or self hatred ... you hate najib because you hate yourself or because you are jealous of him , thats it .... the rest is just bullshit ....

      Posted 6 years ago by Nehru Sathiamoorthy · Reply