KUALA LUMPUR: The Malaysian housing affordability has worsened to 3.6 times in 2014, according to Rahim & Co Chartered Surveyors executive chairman Tan Sri Abdul Rahim Abdul Rahman, in presenting the Rahim & Co Research — Property Market Review 2014/2015 yesterday.
“Housing affordability worsened to 3.6 times in 2014 compared with 3.4 times in 2009. This is based on average terraced house price to average annual household income,” he said. “This essentially means that an average terraced house would cost an average household or family in Malaysia, 3.6 times its annual gross income.
“However, I believe 3.6 times is reasonable and the government should maintain it at this figure. Moreover, the government has a vision to make Malaysia a high-income nation by 2020, and I’m confident we will be able to reach it despite the current economic condition vis-a-vis the lowering of oil prices and lowering of the [value of the] ringgit.”
The data showed that the least affordable terraced house in Malaysia for 2014 was recorded for Sabah at 6.2 times, followed by Pulau Pinang (5.9 times), Kuala Lumpur (5.6 times) and Sarawak (4.4 times). Read more