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Thread: M'sia home prices at 5.5 times of median income

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    Default M'sia home prices at 5.5 times of median income

    http://www.businesstimes.com.sg/real...-median-income

    M'sia home prices at 5.5 times of median income

    Khazanah Nasional survey finds the figure above that for Singapore, US and the UK

    By Pauline Ng

    [email protected]

    21 Nov


    IN median income terms, the average home in Malaysia costs more than in Singapore, the US, the UK or Ireland - one reason being the hefty profits made by builders, according to a survey by Khazanah Nasional.

    If affordable housing should cost three times annual median income, average prices in Malaysia are much higher at 5.5 times. In comparison, Singapore's housing prices are 5.1 times and the UK 4.7 times, its research institute's "The State of Households" reveals.

    At 14.9 times, land scarce but heavily populated Hong Kong occupies a tier by itself, its stratospheric home prices famous the world over.

    "In median terms, our houses are more expensive than those in Ireland and even Singapore," the not-for-profit organisation observed in its inaugural publication which was launched this week. Based on a median income of RM3,626 (S$1,400), it calculated that it would take the average Malaysian 57 months to save the 10 per cent deposit (in a housing account of the pension fund) on a RM130,000 home (based on three times annual median income).

    On top of other expenses, a 25-year loan at 4.45 per cent per annum, would lead to a household's loan instalment payment amounting to nearly 18 per cent of household income.

    The Irish, however have enviable housing affordability. Ireland's housing prices were only 2.8 times annual median income; for the US, it was slightly higher at 3.5 times.

    "At 21 per cent, the profit margins of our property developers are high - almost 2x those of the US (12 per cent), 1.2x those of the UK (17 per cent) and higher than Thailand (14 per cent), although Singapore has higher margins (25 per cent)," said the institute which believes households should be at the centre of economic policy. It aims to undertake data-driven analyses and research on the pressing issues of the nation and based on the research, provide actionable policy recommendations.

    While it is working on the appropriate policy response to housing affordability, it said that the answers lie in reforms of the construction supply chain, land market price setting and land regulations; innovation in building technology and finance; and the provision of affordable housing by the government and private sector.

    Even though many countries are grappling with the issue of affordable housing, builders point to the myriad of issues affecting Malaysia including housing quotas for bumiputras who are given discounts regardless of their wealth. Ultimately, they say, home buyers are saddled with the additional costs, which continue to add up as additional requirements are put on builders, including the construction of a certain number of low-cost homes and the infrastructure for utilities.

    In truth, one would be hard pressed to find a RM130,000 home as in the bigger cities, affordable homes are now closer to the RM400,000 mark. Moreover, in the primary market, buyers still buy off the plan as efforts to implement build-then-sell have not yielded any results.

    Developers contend that home prices are not extortionate given inflationary pressures, rising labour and material costs and regulatory requirements, and that the main problem is Malaysia's wages have failed to keep up with living costs.

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    Some say MY so good should go earn the $ in MY and live in MY. not take SGP pay and KPKB MY good.
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    Quote Originally Posted by minority View Post
    Some say MY so good should go earn the $ in MY and live in MY. not take SGP pay and KPKB MY good.
    Don't quite understand this statement. Why cant they earn SGD pay, rent out their HDB/private & spend/live in MY? I tot Cow is encouraging the lesser equipped to retire in JB, to the extent of building old folks home & medical facilities there?

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    Quote Originally Posted by Warren49 View Post
    Don't quite understand this statement. Why cant they earn SGD pay, rent out their HDB/private & spend/live in MY? I tot Cow is encouraging the lesser equipped to retire in JB, to the extent of building old folks home & medical facilities there?
    Thats becoz SGP have good strong economy and thus reflected in our strength of our currency. Those who KPKB say no need GDP no need economy. Well think again.
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    Quote Originally Posted by minority View Post
    Thats becoz SGP have good strong economy and thus reflected in our strength of our currency. Those who KPKB say no need GDP no need economy. Well think again.
    Walau wat toking u ???? People can earn SGD and spend where they want....why must they go earn in MY if tehy want to spend in MY????? u nut case lah ....people KPKB becos cost of living very high in SG....wat to do with GDP? ...and wat no need economy.....you tok no head no tail.....????
    “Be fearful when others are greedy. Be greedy when others are fearful.” - Warren Buffet

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    Hmm, median income only S$1400.....good news for me......if they can survive with so little.....so can I if I have no choice....ha ha.....but meantime , better work and save more money.....

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    Quote Originally Posted by dare2 View Post
    Walau wat toking u ???? People can earn SGD and spend where they want....why must they go earn in MY if tehy want to spend in MY????? u nut case lah ....people KPKB becos cost of living very high in SG....wat to do with GDP? ...and wat no need economy.....you tok no head no tail.....????
    High compare to where? to MY? Coz we have a strong SGP thats why u feel its high when compared to MY ! So no GDP no economy u think ur SGD still can change for 2.65 RM! ?? WAKE UP!

    So before you complain MY is CHEAP Count yourself lucky we have a strong currency. Go earn in MY and see if find MY cheap a not!
    Last edited by minority; 4th December 2014 at 11:59 PM.
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    No one in the right mind will earn in My when they can earn higher in Sg esp. If Sgprn themselves....if not why so many Malaysians come to work in Sg?

    Dunno why but petrol from Malaysia not only cheaper but seems to last much longer compared to Sg petrol too....

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    Quote Originally Posted by mummy View Post
    No one in the right mind will earn in My when they can earn higher in Sg esp. If Sgprn themselves....if not why so many Malaysians come to work in Sg?

    Dunno why but petrol from Malaysia not only cheaper but seems to last much longer compared to Sg petrol too....

    So ironic when people compare. If Singapore have no GDP growth or economy how would Singapore $ be stronger than MY? While the people KPKB n complain singapore no good they want to enjoy the Sing $ strength overseas. If Sgp is no good u think SGD will be strong?

    Mummy you are from MY u should know why MY petrol is cheaper right... all the subsidy costing the Government $$$. until they take the subsidy off which is being planned. Also last long or not you should know car efficiency depends on city driving ( jam and traffic lights stop ) verses highway driving.
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    Quote Originally Posted by minority View Post
    So ironic when people compare. If Singapore have no GDP growth or economy how would Singapore $ be stronger than MY? While the people KPKB n complain singapore no good they want to enjoy the Sing $ strength overseas. If Sgp is no good u think SGD will be strong?

    Mummy you are from MY u should know why MY petrol is cheaper right... all the subsidy costing the Government $$$. until they take the subsidy off which is being planned. Also last long or not you should know car efficiency depends on city driving ( jam and traffic lights stop ) verses highway driving.
    You seem to have a "us vs them" mentality, when the leaders like LHL and Najib are talking about connectivity, win-win and taking on the rest of the world.

    MY may not be to everyone's liking, but one should assume that the Singaporean has carefully considered the 'trade-off' (including safety) when making his MY purchase, be it to stretch his retirement savings or for investment. Btw, Ron 97 is not subsidised in MY.

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