‘Affordable’ homes still out of reach for many Malaysians despite lower prices, netizens say - Singapore News

KUALA LUMPUR: Malaysia’s affordable‑housing market faces a paradox: strong demand for homes under RM300,000 (S$96,660) yet tens of thousands of completed units remain unsold, NAPIC data show. As of Q1, 14,201 finished units worth RM2.77 billion (S$890 million) sat idle in Klang Valley, Johor, and Perak. 

Experts say affordability now means total ownership costs and location, not sticker price, leaving many lower‑ and middle‑income buyers unable to finance liveable, well‑connected homes. Social media users suggest that the government should implement a “vacancy tax” to possibly encourage developers to build more affordable homes. 

X user @cfc_nrmnrckwell states that such laws should be implemented, as rich owners and developers are allegedly hoarding all the valuable land and real estate for themselves. The user added that the pricing of new houses is not exactly affordable for the average Malaysian. 

He adds that many Malaysians earn near the poverty line, making properties priced at RM300,000 (S$96,660) effectively out of reach for large swathes of the population. In reality, numerous households juggle multiple jobs just to cover basic living costs, so even a seemingly affordable price tag can be unaffordable once total ownership expenses are considered.

Furthermore, another X user asked whether developers are sharply marking up prices or merely adding modest profit margins. He argued that if construction costs were only RM50,000 (S$16,000) per unit while units sell for RM300,000 (S$96,660), that would be a serious problem. 

He also noted that land isn’t uniformly scarce in Malaysia—especially outside the Kuala Lumpur/Selangor area—so location and development costs, not just land scarcity, should factor into pricing and affordability debates.

However, a third argues that homes priced under RM500,000 (S$161,150) often struggle to secure mortgage approval. Lenders reportedly view such loans as higher‑risk because buyers in that segment may be more likely to default, so banks tighten lending criteria or decline financing—effectively putting ostensibly “affordable” homes out of reach for many would‑be buyers.

Property prices in Malaysia are lower than in Singapore, but that comparison overlooks a wide salary gap between the two countries. Many Malaysian graduates earn the equivalent of about S$700 a month, so even if homes cost less on paper, they remain unaffordable in practice for large numbers of buyers.

- Advertisement -