Hornbill Unleashed

March 24, 2017

M’sia short of 1m affordable houses by 2020, BNM estimates

Filed under: Politics — Hornbill Unleashed @ 8:01 AM

Bank Negara Malaysia (BNM) warns that the country may face a shortage of one million units of affordable houses priced below RM250,000 by 2020.

“The housing market has not been able to provide an adequate supply of affordable housing for the masses. The undersupply of affordable homes is likely to worsen going forward given current trends in income and demographic factor,” said BNM in its 2016 Annual Report released today.

This is despite multiple programmes by the private sector, the federal government and state governments to supply affordable housing, said BNM.

At a press conference earlier today, BNM governor Muhammad Ibrahim pointed out there was a drastic reduction of affordable houses after 2010.

“Before 2010, almost 70 percent of new home launches was priced below RM250,000. Today, less than 30 percent of the new launches are affordable houses,” he said.

In its report, BNM said a carefully-designed policy of intervention is required for the housing market to ensure that it is able to accommodate households of all income groups.

BNM called for the establishment of a central agency to consolidate the provisions of affordable housing and implement cost-saving technology.

Meanwhile, Muhammad said existing measures are still needed to tackle the increase in housing loan impairment and delinquency.

The measures include reducing unproductive debt through debt rationalisation and consolidation, accelerate supply of affordable housing and rental schemes, and ensuring efficient supply of affordable housing units to eligible target buyers, according to him.

On another matter, he said BNM expected inflation to reach between three and four percent this year due to the increase in global oil prices on domestic retail fuel prices.

The country only recorded an average of two to three percent inflation in 2016.

“The inflation would remain relatively high (for the most part of) 2017. We might also see in certain months inflation reaching above four percent, but towards the second half of the year, we expect the inflation rate to (be) lower,” he said.

“So, there will be a lot of noises in between, but on average it should be between three and four percent,” he told a press conference today after BNM released its 2016 annual report.

He emphasised that the cost-driven inflation is not expected to have significant spillovers given the moderate domestic demand condition.

Source : Kow Gah Chie @ Malaysiakini



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