Residential property prices are on the rise in Kuala Lumpur due to constraints being placed on their supply. There are challenges in providing affordable housing in the Malaysian capital, but fortunately, there are affordable alternatives in the neighbouring state of Selangor.
In the recent media briefing of the property industry survey 1H 2015 at Wisma REHDA (Real Estate and Housing Developers’ Association Malaysia), REHDA president and chairman of the communications, public relations, and publications committee Datuk Seri FD Iskandar shared that in places such as Kuala Lumpur, there are no more land. Selling prices of residential properties in Kuala Lumpur are rising up to RM1million to RM2million.
The property industry survey 1H 2015 was conducted from January to June 2015 and was responded to by 125 REHDA members across Peninsular Malaysia. The survey was conducted to assess the property market performance for the first half of 2015, and the property market outlook for the second half of 2015.
The survey was intended to gain insights into the overall market prospects and challenges of the current economic situation as well as assessing the current state of the housing and property industry.
The leading challenges in the provision of affordable housing are due to high land prices making affordable housing unfeasible, increased overall cost of doing business, requires cross-subsidies from higher-end properties, not consistent with surrounding properties, and lack of incentives due to low density allowable.
However, residential properties with selling prices below RM500thousand in Selangor can be found in Pengerang, Teluk Gong, Dengkil, Hulu Langat, Kajang, and Teluk Pulai.
Given that transportation infrastructure developments are taking place in several parts of the Klang Valley, home buyers can expect improvements of accessibility to matured neighbourhoods and economic centres of activity. This would make towns with affordable housing viable living communities for home buyers.