Wake up and Smell the Coffee
I do not know which is sadder – Developers who seize every opportunity to raise property prices or the total oblivious nature of some people who do not change with times.
Some of you may already be on the same page as me but some may be scratching their heads right now saying “Dude, what in heaven’s name are you trying to say?”
Well, let’s take a while to digest this topic. Property prices have shot up – Yes. This is simply due to the increase in land value. However, it didn’t just happen overnight and surely not just to one particular area in Malaysia. It has risen not just nationwide but also internationally, though more evident to us Malaysians in certain areas such as Klang Valley over the course of the last 5 to 10 years.
So, we have had 5 to 10 years to adjust to this increase in price, which some people took into consideration and some didn’t. Those who didn’t are still stuck in a forgotten time capsule that’s been left in the early 2000s.
What got me interested to share my thoughts on this matter was a survey conducted by Crossroads Public Research Sdn Bhd on our behalf, where you could see much more findings shared by Chris on page 3.
Sampling 1,000 people to represent 1 million gave the researchers funny yet interesting results. 60 percent of Johorians perceive affordable housing to be between RM50, 000 and RM100, 000, saying that their ideal repayment for a housing loan is within RM500 per month as their average household income is between RM3,000 and RM5,000.
I would agree with this perception – 20 YEARS AGO!
Common guys, there is a very distinct difference between ‘Affordable’ Housing and ‘Low-Cost’ housing. Even some low-cost housing projects in today’s time may spill over RM100,000.
We have to grow with time if we plan to support our nation’s economic growth and expansion. Yes, there was a time when you could not compare the modernization of Johor to that of Klang Valley but today, with the vested interest into Johor land by international investors, this shows that the state has a potential to grow, and in order for this to happen, land prices need to rise in tandem, hence the rise in housing prices, hence the shift in the ‘affordability’ bracket.
So my conclusion is simple. Wake up and smell the coffee – you have to realise that RM50,000 for a midrange house in today’s day and age in growing areas like Johor or grown areas such as Klang Valley, Penang, Malacca and others is just impossible to find.
But this sparks up another question – Is there not enough low-cost housing in JB to accommodate the majority income earners? Are developers neglecting this aspect and only looking at profiting from international investments? Are we blinded by the speculation to not accommodate the importance of home-buyers for stay rather than those for investments? Is the average man in Johor not earning enough for today’s world?
Great topics for discussion, drop me a note with your thoughts on the matter – it may just become my discussion for my next column.