Housing prices in Penang and the rest of Malaysia are soaring beyond the reach of many Malaysians. While many property developers and speculators are laughing their way to the bank, many ordinary workers are struggling to buy their first homes.
Blog reader Rango left this comment:
PAP in Singapore losing their votes to young voters who are unhappy with the high cost of housing in Singapore.
Young people in Malaysia also face the same problem. Semi-D houses in Penang can go for RM930K – flat land. after the OC is obtained the asking price skyrockets to RM1.3mil.
A starting salary for an engineer is about RM2K to RM2.2K. After 5 yrs maybe he will hit a salary of about RM3K. Maybe by the time he is 35 he will make manager and earn about 5k-6k. By then he has to feed a family, insurance, car, education for his kids etc.
This is not rocket science but a simple calculation will tell you he will never be able to afford a house. Meanwhile there are foreigners buying two to three houses (some of them mid range apartments) and selling them for exorbitant amounts making profits. Why are we allowing this to happen? There should be a cap and guidelines for home ownership for foreigners. they are helping to spoil the market. How can the locals compete against them when they have the power of currency exchange. Our housing minister Chor must wake up to reality instead of finding excuses.
What happened to the controls on foreign ownership of local property?