Sabah’s average affordable home price is RM265,000
Published on: Sunday, November 03, 2019
By: David Thien
KOTA KINABALU: Every state in Malaysia has its average real purchasing power and affordable housing value which differs from other states, considering the population size and GDP per capita and household income.
Sabah’s average affordable home value in 2018 was RM265,000, with a population of 3,640,000 and an average per capita income of RM25,861.
ADVERTISEMENT
This was revealed by Dr Daniele Gambero (pic), a public speaker on “Budget 2020 and its implication from a Propenomy viewpoint”, at the recent Propex 2019 held here.
He disagreed with a single sum figure for the whole of Malaysia as stated by organisations such as Bank Negara and other valuation or rating agencies.
“Budget 2020 allocates RM5.2 billion to Sabah for development expenditures.”
He said for Sabah, the estimated per household income was RM3,448 and 35 per cent of that amount to be allocated to pay for a home purchase amounted to RM1,207, assuming the loan tenure is 30 years with 4.6 per cent interest a year.
ADVERTISEMENT
Malaysia’s national average in 2018 was RM420,357.
When Dr Daniele compared the Sabah Development Corridor population data for Sabah at 3,876,000 with a per capita income of RM19,734 at 2015, it is even lower.
ADVERTISEMENT
Most of the houses and apartments on sale by developers in Sabah are priced above the Sabah average affordable value in 2018 of RM265,000.
“Budget 2020 encourages first home ownership, reduces overhang in residential properties and reduces the burden of property owners from paying higher tax during disposal of residential sector properties,” said Dr Daniele.
“A house can be called affordable when the household living in it will need less than 35 per cent of its net income to repay the mortgage for the house.
“However, affordability is not only about being able to afford to buy or rent a house but also being able to afford to live in.”
In comparison, Sarawak’s average affordable home value in 2018 was RM540,000, with a population of 2,830,000 and an average per capita income of RM52,301. It’s almost twice higher than Sabah’s.
The estimated per household income was RM6,973 and 35 per cent of that amount to be allocated to pay for a home purchase amounted to RM2,441, assuming the loan tenure is 30 years with 4.6 per cent interest a year.
The states in Malaysia with lower average home affordable value in 2018 were Kedah (RM210,000) and Kelantan (RM135,000).
The other West Malaysian states and the Federal Territory of Kuala Lumpur were ranked higher than Sabah, with Kuala Lumpur at the top (RM1,100,000), followed by Penang (RM560,000), Selangor (RM525,000), Malacca (RM480,000), Negeri Sembilan (RM430,000), Pahang (RM360,000), Johor (RM350,000), Perlis (RM315,000), Perak (RM310,000), and Terengganu (RM305,000).
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
