Just read an article from TheStar online a few days ago mentioning that Malaysia is facing a "Homeless Generation Era". Based on the current trend in the rise of house prices combined with stagnant incomes, it was predicted the next generation will not be able to afford a house of their own.
In my opinion, this statement is not entirely accurate. As high as prices will go, property prices eventually will be based on the laws of supply and demand. It's true that the next generation of workers will find it harder to own homes, but it does not mean that they will have no place to stay.
The following trend will very likely occur :
In my opinion, this statement is not entirely accurate. As high as prices will go, property prices eventually will be based on the laws of supply and demand. It's true that the next generation of workers will find it harder to own homes, but it does not mean that they will have no place to stay.
The following trend will very likely occur :
Renting will no longer be taboo anymore.
As huge supplies of homes come into the market, it will dilute the rentals as landlords still need to pay their installments. As such they will be forced to lower the rentals to reasonable prices.
Rentees will have a great choice of properties to select. After renting for 1 year they will move to the next property to stay which is newer and shinier. This trend was observed in areas like Cyberjaya in recent years also. We notice that people will move out to better apartments after their lease expires. Eg. In Cyberjaya, a group of people start renting in Cyberia, then move to Domain and then Shaftsbury Square
In developed countries like Germany, renting is a pretty normal sight. As Malaysia is still a developing country with healthy 4-5-percent GDP growth, there is still some room for income growth and therefore house ownership is seen to be still an achievable goal. The government also seem to be keen on maintaining this growth figures by announcing mega contruction projects like MRT (Mass Rapid Transit) and HSR (High Speed Rail).
As huge supplies of homes come into the market, it will dilute the rentals as landlords still need to pay their installments. As such they will be forced to lower the rentals to reasonable prices.
Rentees will have a great choice of properties to select. After renting for 1 year they will move to the next property to stay which is newer and shinier. This trend was observed in areas like Cyberjaya in recent years also. We notice that people will move out to better apartments after their lease expires. Eg. In Cyberjaya, a group of people start renting in Cyberia, then move to Domain and then Shaftsbury Square
In developed countries like Germany, renting is a pretty normal sight. As Malaysia is still a developing country with healthy 4-5-percent GDP growth, there is still some room for income growth and therefore house ownership is seen to be still an achievable goal. The government also seem to be keen on maintaining this growth figures by announcing mega contruction projects like MRT (Mass Rapid Transit) and HSR (High Speed Rail).