Sabah unaffordable to the younger set

Kuala Lumpur: There are signs that Generation Y youngsters (those born between early 1980s to 2000) can no longer afford to live in big cities like Kuala Lumpur, Penang, Johor Baru and Sabah. "Parents are chipping in for the downpayment. And, commuting from the suburbs to the city centre is still an option.

"But when prices get inflated far beyond their means, the same will happen here (as in Hong Kong).

"Even if demand dropped, it would not be substantial," said Association of Valuers, Property Managers, State Agents and Property Consultants in the Private Sector Adviser, Wong Kok Soo.

"While most Gen Y shy away from owning property in developed countries and big cities, demand from millennials here is still holding, especially with parents assisting them with the downpayment," Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Seri F.D. Iskandar said.

SPONSORED CONTENT

Sabah revenue hits RM6.97 billion: Hajiji says GRS State Government may see full term

Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

Demand from first-time buyers, including the younger generation, remains strong although housing affordability is a challenge, said Bank Negara.

The central bank added that they accounted for 75pc of 1.47 million borrowers.

Owning and investing in a house remains a priority for many Malaysians.

This was reflected in the household borrowing trend where the buying of homes continues to be the fastest growing segment of household lending, with annual growth sustained at double-digit levels (11pc as at end-March 2016), said Bank Negara in a statement.

Those who cannot afford it themselves, and do not have parents to help, turn to their friends.

In his 30s, Daryl Toh, and two of his college mates own a condominium in Penang; they pooled their resources to purchase the unit five years ago.

"It's in a premium area and since we couldn't afford a place on our own – at least not prime property, we became joint owners."

Financial adviser Yap Ming Hui said it makes perfect sense to own.

"Of course the Gen Y here are still keen on buying. You pay the installments and eventually own a home.

Only those who can't afford to buy are forced to rent."

Iskandar agreed, saying that although the property market was slow now, the drop was manageable.

"Like everything else, it's cyclical.

"The property market goes up for years and after some time, begins falling before rising again."

He said the market would pick up with the completion of infrastructure development and public transportation facilities.

Stay up-to-date by following Daily Express’s Telegram channel.

Daily Express Malaysia

Rehda, he said, was working closely with the Government to find ways to facilitate home acquisition especially among first-time buyers.

"We proposed a review of the financing guidelines that have negatively impacted buyers' ability to secure financing," he said.

Try 1 month for RM 18.00

Try 1 month for RM 18.00

Try 1 month for RM 18.00