It is becoming increasingly difficult for ordinary Malaysians to find decent affordable housing in urban areas.
Blog reader Marika Simon complains:
I’m trying to buy a second-hand apartment or condo. The owner bought at a low price but is selling at a very high price. I saw an 800 sq feet apt selling for RM280K but the banks valued it at RM180K–200K!
These people are greedy. It may be their choice to sell at a price they like but how to get buyers if your unit is ridiculously priced?
In areas near Batu Ferringhi, homes are bought up by foreigners. Most housing caters to the rich. It’s disappointing. Even a 700 sq ft bird cage-like-unit is going for RM300K!
I wish there would be laws that control how much owners can sell their units for. So many places are only for the rich and I wonder … how many millionaires, billionaires are there? I even heard that a guy bought three units at RM90K each but is selling each at RM180k to RM200K!
Greed. Reserves a place in hell.
What economic and financial measures can be imposed to tackle the soaring house prices?
- reform Capital Gains Tax
- introduce tighter controls on foreign buyers
- impose limits and restrictions on ownership of second homes
- impose restrictions on housing loans
- look into reasons for low income
- increase quotas for low- and medium-income income for public, private sectors and GLC developers
The big picture is that we are seeing a failure of market mechanisms to ensure everyone has a roof over his or her head. The idea that a ‘hidden hand’ can somehow work miraculously to achieve an optimum balance – despite many people acting individually based on the impulse of greed and selfishness – has been proven to be a fallacy.
Can the tinkering of market mechanisms resolve this market failure when the larger value problems in society of corporate and individual greed, corruption, and accumulation of wealth remain while workers’ incomes are suppressed?