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Strong Demand For Affordable Housing Despite Loan Application Hassles: Survey

Last update: 20/10/2016

KUALA LUMPUR, Oct 20 (Bernama) -- The demand for affordable housing remains strong, especially for young or first-time house buyers, but property ownership is hindered by affordability and stringent bank regulations, the iProperty.com Asia Property Market Sentiment Survey (H2) 2016 has revealed.

iProperty Group, an online advertising business serving the real estate industry and part of REA Group, conducted a half-yearly survey of close to 15,000 respondents.

REA Group Chief Operating Officer-International, Arthur Charlaftis, said despite predictions that the residential property market is likely to remain flat this year, there is increased demand for affordable housing, particularly through a growing, young population looking for properties in the major urban centres.

"While Malaysians are concerned about the rising house prices and affordability, property is still viewed the most attractive investment choice and this is due to capital growth opportunities and it's also more stable compared to other assets," he said in a statement.

According to the Bank Negara Malaysia Report 2015, it is estimated that the nation requires 202,571 new houses annually between 2016 and 2020, with the supply to come from both public agencies and the private sector.

"Given the high demand for affordable housing, it was not surprising that respondents felt that the government needs to do more to provide affordable housing.

"More than half of respondents also felt that the government should also regulate the prices of newly launched properties by developers," he added.

-- BERNAMA