Malaysians are perplex as to why the escalating hike of property prices in the past few years is
allowed to continue. Many Malaysians who really need a roof over their heads have to pay beyond their means ...just to a little roof over their head!
Questions we should ask ourselves and the responsible authorities / government agencies overseeing housing and property development...
- Why are those who already own two or more residential premises allowed to continue to speculate on residential premises and allowed take easy loans from the banks? Is it the role of the bak, bank negara or the government to curb this?
- Why are developers allowed to continuously build 'luxury' property / high end condos? - for then to sell to foreigners, and Why are foreign ownership of property allowed to continue ito escalate?
- Any action by the authorities to monitor and promptly help to stop rising property prices? - since it has been highlighted by so many in the last few year? (eg. read 'Penang houses are just ‘not affordable’ 03-12-2010)
- Who is monitoring the lack of low and medium cost housing that should be in the market to cater to the majority of Malaysia? Any takers?
- Does the authorities know that a large number of new residential properties are not owner occupied or empty ... just because many speculators buy
Perhaps some of the answers can be found below:
By Lee Wei Lian - May 04, 2011 (The Malaysian Insider)
The association recommended that the government implement stronger measures to deter speculation. — world-stay.com
KUALA LUMPUR, May 4 — The National House Buyers Association (HBA) has criticised the apparent collusion between some developers, valuers and banks for pushing up property prices to levels which it called “exorbitant” and said that stronger measures are needed to deter speculation.
HBA said in a statement that in addition to low interest rates and easy credit which had fuelled speculative activity, greed had taken over the market.
“A ‘unholy alliance’ exists between certain developers, valuers and banks,” said HBA.
"In an environment of hot demand, the banks work in cahoots with developers assisted by those wayward valuers. Our ‘teh tarik syndrome’ is also very relevant. When the price of condensed milk increases by 20 sen, the entire cost ‘teh tarik’ increases by 20 sen. Similarly, when the cost of construction increases by 20 per cent, the equivalent cost of housing increases.”
..........details HERE
Penang houses are just ‘not affordable’ 03-12-2010, The Star
THE average price of a house on Penang Island in 2009 was RM550,000 — the highest in the country and RM160,000 more than the average price of a house in Kuala Lumpur.
State government think tank, Socio-Economic and Environmental Research Institute (Seri), said the price was eight times the average household in-come. Its senior fellow Dr Lim Mah Hui said the house price should be between three and four times the average household income.
Dr Lim added that most houses that were built did not cater to the need of the majority of people.
................“Even the middle class cannot afford to own a house or apartment, let alone the lower income group,” he said.
.........................He said the majority of Malay-sians want affordable homes but developers are supplying houses that they cannot afford.
..............“Developers prefer to cater to investors and speculators who buy to rent or to flip over and make money. They also go overseas to aggressively market properties as they are still cheap by international standards.
...........details here
