We are told there is a glut in “affordable housing” these days. Is that really the case? Well, that would depend on what you consider to be an affordable price for a home.
So let’s take a poll to find out:
Much of it will depend on your household income and household debt. As a guide, the Penang state government has a eligibility guide for buying homes based on monthly income level: up to RM6000 income for a RM200000 home, RM8000 for a RM300000 home and RM10000 for a RM400000 home.
Bear in mind that the results of this poll are likely to be skewed in favour of middle-class perceptions in view of the demographic profile of blog readers, and the real affordability threshold could therefore be much lower than what the results here would indicate.
By the way, I append this quote from The Guardian about the situation in Greece:
“In Crete, where I am from, a lot of investment went into housing for foreigners, and it was the first to collapse,” said Giorgos Stathakis, the shadow development minister for the radical left main opposition Syriza party. “Foreigners stopped buying, or started selling off their houses, when the crisis began in 2010.
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Due to oversupply of new condominiums that are near completion by 2016, prices of condominiums in Johor Bahru has gone down 15-20%.
http://www.orientaldaily.com.my/nation/gn201442026
Those earning Singapore dollar are holding back their purchase in the hope that their Singapore dollar will further appreciate.
Read the report on Oriental Daily today:
Any chance that the housing in Penang will become cheaper soon?
Property developer Tanjung Villa Development Sdn Bhd has won the joint development project to build 803 affordable homes on 1.7ha at the Sandiland Foreshore in Jalan C.Y. Choy here.
The company, a subsidiary of the Tah Wah Group, was given the project by the state government for a tender amount of RM36mil.
Beijing Shanghai Tianjin despite the cities of Communist socialist country, also recently squeezed the natives out to live in hinterland and commute to these cities by trains daily. Market forces dictate over sentimental, blame the Chinese leaders to succumb to developers?
And Shanghai has ghost condos nobody can afford or whose investors have burnt their fingers speculating in a property downturn. Serve them right for greed.
No matter which ideological government in place which doesn’t justify its wrong action, serving the common people will go a long way to peace and prosperity instead of labor strikes, social unrest and sabotages.
Greed means craving for more low cost houses (to keep mistresses) when already got one at age 37.
If you have nothing constructive to comment, pls don’t pang phui like Niao Kong.
It shows your level of mentality & maturity.
Learnt the ropes of creating sex scandal from the BeeEnders?
What a shame without creativity of discourse.
City living is expensive. It is a worldwide phenomenon.
Penang is now officially a city.
Nanyang reported on front page today that many home investors will ‘let go’ their units in the coming year due to uncertainty in economy and the impending rise of US interest rate. So home buyers could possibly pick up good bargain:
http://www.nanyang.com/node/709307?tid=643
Good news to us. Meaning concrete bubbles bursting soon with diving global stock markets due to Greece fiasco, new Fitch ratings taking into account many bolehland scandals whether true or not.
Now its to time to bargain hunting……
The development in Greece will likely to kick start a series of chain reaction affecting financial and housing markets.
Already the ringgit fell to a decade-low as Fitch Ratings decides whether or not to downgrade Malaysia’s credit rating.
Currently, household affordability has to factor in household transport cost which is killing. For those who are very critical of the so called Niao Kong and the gang, please go convince the Federal government to lower our excise duties for motor vehicles and allow local administration for public transport matters. When we do not have to own a grossly over priced and yet ever depreciating motor vehicle to make a living, housing affordability will improve tremendously . Go on! Go convince our dear federal government to allow local autonomy on public transport matter and stop taxing so heavily on our… Read more »
I’ve just talked to a (Penang) developer a month ago, he lamented there’s only about 1 to 2% of lands in Penang Island left for future developments ! As there are almost a vast majority part of hilly lands in Penang are NOT POSSIBLE for developments under the present stringent land law.
I have to wonder, do we be able in the future more liberal in imposing the gradient 250 ft limit ?
That is because much of the available land has been used to build unaffordable housing.
The federal government had left Penang out of the RM1.3 billion budget allocation to build 80,000 affordable units under the 1Malaysia Housing (PR1MA) project nationwide. The applications by JKP Sdn Bhd (JKP) and Penang Regional Development Authority (Perda) are for homes touching RM1.8 million on the island and RM800,000 on the mainland. Penang housing, town and country planning committee chairman, Jagdeep Singh Deo has said that 11 out of the agencies’ 15 applications have been rejected due to the constructions planned on land obtained from land acquisition for public purposes – such land are designated for public purposes and has… Read more »
Is this true?
Sure there is a glut. Just ask ourselves how many can really afford these affordable housing. 200k house 6k, 300k house 8k. Could those earning up to 3k and below able to buy or get loan for it. Check how much does a security guard earn. 32per hours for a 12 hours shift.
The guards need to upgrade skills. Many Bangla and Myanmar migrants came to Malaysia hardly with big cash but can now speak good Bahasa operating kopitiams and sundry shops at Komtar, Penang Road, BJ Komplex shophouses.
Work hard. Work Smart and don’t expect ringgit to fall down from the sky.
Check up the available affordable homes in Penang for first time home owners in July:
http://www.penangpropertytalk.com/2015/06/check-out-affordable-housing-all-under-one-roof-at-property-fair/
Be proactive to look up one yourself, instead of lamenting for new world order.
If you are already a home owner, be contented. Let others have the opportunity.
I remember he just said not so long ago that there are 40 thousand applications applying. Where are the balance as there is only about 1 over. K unit. Pop he keep asking for Prima
Get rid of Niao Kong, after then you say we lament enough.
Otherwise, overt-idol-worshipping can cause wrath of God.
More so for not fulfilling 308 socialist cakap ada bikinkah?
I was not at Han Chiang rally in 2008. I hope tunglang can publicly declare what promises that have not been fulfilled.
I think won tan Mee still affordable now starting at RM3.50 unless you want to taste the add liao ones ( with air con n tax included) from the franchised ones. The choices are there. Likewise for same Chendol same sifu different pricings for lorong or mall enjoyment.
Affordable food also on the decline with the demise of Menu Rakyat 1Malaysia?
http://www.freemalaysiatoday.com/category/nation/2015/06/29/operators-of-affordable-meals-scheme-want-it-phased-out/
Good to see readers like gk sharing useful information that other readers could tap on.
Hope to see more constructive feedback.
I guess many people are in ‘middle-income’ trap – cannot afford high price housing & cannot qualify for low cost ones, thus the frustration as evident in the sentiments of many readers here.
“To conquer frustration, one must remain intensely focused on the outcome, not the obstacles.”
― T.F. Hodge, From Within I Rise: Spiritual Triumph Over Death and Conscious Encounters with “The Divine Presence”
Those retiring ones develop fear factor mentality with the rising cost if livings. Tendency to blame others to gain moral support as easiest ways to let go the frustrated feelings.
I am not rich but I don’t see rich people as a threat to my inner equilibrium {Bruce Lee emphasized this}. I see opportunity to start small scale trading targeting these rich folks as niches customers to grow my business. I hope MPPP allows us to trade ala flea market style at Straits Quay where high concentration of richer folks can sustain my trading.
Dear hamster. Don’t sidetrack the issues being question here to create counter-argument distraction. You have your choice to do your whatever private business (without having to brag here) with whoever you fancy but you don’t have to link to those who have legitimate reasons to question the present state gomen which is giving a free reign to frenzy developers. Our living standard or your created rich-poor conflict of interest is not for you to assume from thin air, neither to question or to mock as your small brain pleases. Do learn to empathise with others & you may prosper in… Read more »
Tunglang has a very negative outlook towards life.
Cheer up, man.
The world does not owe you anything!
Damien, there are pro and con in everything. Just allow others to express their opinions. It won’t hurt your ego, will it? Jumping to conclusion about others is just as bad a reflection on you.
How we consider affordable housing is not the point as that depend on one income and affordability. Its how the govt should define affordable housing in its right propective and not use it to deceive the people. Go to the MPPP third floor and look at the the notice board which show so many 72k affordable units being allotted. It is so or we have been deceived when the 72k LMC unit is not what it is supposed to be(?) In fact the 72k units are being sold at more than 200k by the developers. This is clear cut lies… Read more »
Tingling,.your comments is apt and right to the point absolutely correct,
Cheers Kopi-O kau kau kau.
In 90s most penangites won’t settle at Bayan Baru, sungai ara or even Balik Pulau citing too remote, now they regret not investing at affordable prices then.
Now Aspen City at Batu Kawan to boom in 20 years times, if still hesitate to move over while can still afford, then sure regret later cry pa cry ma in this blog?
“The Rise”, Penang’s affordable housing scheme on Jalan SP Chelliah, with a gross development value of RM600 million, was scheduled for completion in November 2019.
The Rise will consist of 770 units of 700 sq ft low-medium-cost apartments priced at RM72,500 each; 883 units of 800 sq ft apartments priced at RM200,000 each; 165 units of 900 sq ft apartments priced at RM300,000 each; and 275 units of 1,000 sq ft apartments at RM400,000 each.
Cod out whether it’s really so. STILL TIDUR
1323 units priced from Rm200K – Rm400K but only 770 units@Rm72K.
What is the population of Penangites & households? Pls do your Niao Kong accountant’s math of 28th Flr Komtar.
You call that affordable? Get real.
Many thanks for the info on The Rise.
I hope other readers can share useful info, not their frustration.
zzzzzzzzzzzzzzzzzzzzzzzzzzz, zzzzzzzzzzzzzzzzzzzzz, zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz…
Sleeping beside Sleeping Buddha @ Wat Chaiya Mangkalaram Temple for a refreshing tomorrow.
Why so quick to change your name from Niao Too Lan to Niao T Lan?…
Actually I changed it because I wasn’t sure what it meant.
Penangites can Rise to the Light of WorldCity!
Avoid the low end high rise if you can afford a more expensive one, else your nightmare will begin when there is poor/no maintenance due to reluctance/inability of residents to pay the monthly maintenance charges.
To the greedy developers, affordable housing formula is: cost of building (inclusive of really cheapo foreign legal + illegal labor) + cost of land (inclusive of land bought long ago) + advertising & permits + agent commissions + as high as sky profit margin = affordable home pricing in the range of Rm300K – 500K. Now you know why property development is the proclaimed business of becoming millionaires for green horns in the new century exhorted by marketing & career gurus in the slippery ballroom conventions. To Niao Kong, its formula of Rm200K – 400K as affordable range is way… Read more »
Perhaps Jho Low the billionaire philanthropist could help subsidising low income Penangites to own a home, come next GE?
http://www.themalaysianinsider.com/malaysia/article/another-side-to-jho-low-billionaire-philanthropist#sthash.tUca74vR.dpbs
He should be answering questions before the PAC.
You are talking like Niao Kong. Get real.
There wouldn’t need for a social-philanthropist if not for Niao Kong’s corporate-politico tango of housing fantasy for the rich & famous. And Jho Low is no fool for nothing.
Ringgit is depreciating. Those working in Singapore with S$ salary will have 2.8x advantage when come to affordability.
Today affordability is the function of bank loan.
Malaysians are hooked on loans and installments.
Buy with future money, and banks will continue to prosper.
Yes, that’s a good point. A lot of it is borrowed money, contributing to household debt.
Anil ; You cannot simply blame household debts on borrowed money. If you buy a house or apartment, though you borrow, your apartment will appreciated to almost or equal of your borrowed money in time. If you did not borrow to buy that house you would still be paying rent and the rent would still be almost equivalent to the installment (borrowed money). In time you may have no asset to rely if you did not borrow and the rental will still be very very much higher than than the installment (borrowed money.) Borrowed money only affect the speculator who… Read more »
Even some of those earning way above Rm6K (the lowest income threshold to qualify for a Rm200K home loan) are in debts, good debts & bad debts. And many have upgrade skills & careers at great sacrifices just to afford the aspired standard of living BUT be in debts once again. Is this called having a life? The economics of rich getting richer & middle-income getting poorer is a way to enslave the majority under the legalised system of manipulated low incomes + lending at hefty interest rates in which many will have to struggle just to make ends meet… Read more »
Going by Al Ries/Jack Trout’s principle, Penang has been positioned as a place away from the clutches of Umno (except occasional flag burning/black cake incidents in Komtar), thus attracting outsiders who are willing to pay the housing premium to gain residence in the island.
…thus attracting outsiders who are willing to pay the housing premium to gain residence in the island.
You call that CAT’s social responsibility for affordable housing (for Penangites) strategy?
Or is it a kacang putih strategy to fool Penangites after the promises of 308 as an unkind reward for free emotional votes?
Pls don’t quote Al Ries / Jack Trout simply to impress without substance which doesn’t align to Penangites needs & wants. Al Ries & Jack Trout would be utterly ashamed.
Building more premium / high end housing to attract richie outsiders speaks volume of Niao Kong’s Cosmopolitan intention:
Mass social engineering of Penangites who are not so rich (inclusive of getting poorer middle class) to the mainland & beyond so as to fulfil greedy developers’ fantasies puppet-string-tied to corporate-political tango. Is this Niao Kong’s sly way of winning trust & bitting back?
The housing of Penang seems to be positioned as:
Penang island = Sam’s Groceria (High-end premium)
Seberang Prai = Mydin (Low-end value for money)
Don, So you agree to locality class division of locals with regard to social engineering?
You must be drinking too much Sg Pinang Black Tea. Before this 308 promises, there wasn’t so much of this social engineering whereby all strata of Penangites could earn a living & live in any place of choice.
Check your conscience instead of being dizzy-spelled under the Niao Kong’s Cosmopolitan Mirage of Bluffs.
What has happened to BN’s janji to build low cost housing at Ayer Itam on the land ownrd by 1MDB, when Najib was fishing for votes before GE13?