Klang Valley still affordable
KUALA LUMPUR: You must have an average household income of RM14,580 a month to afford a home in the Klang Valley, according to a recent study.
The study – spearheaded by Sime Darby Property Bhd in collaboration with the Faculty of Built Environment of Universiti Malaya – takes into account the current household spending trend, price of homes and mortgage rates.
It found that certain groups of buyers interested in strategic areas can have access to houses that are priced at 56 times their household income.
The study also found that this same group can afford to spend up to 26% of their monthly household income to service a mortgage.
It identified strategic areas in the Klang Valley that are considered not only accessible but have the potential to appreciate in value. They include Nilai, Denai Alam, Bukit Jelutong and Bukit Subang.
A report of the study said that houses in selected areas in the Klang Valley remain accessible to homeowners who may be looking to invest in a second home.
The Housing-Income Index which was launched here yesterday by Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan, who said the survey results would be useful for potential house buyers.
“The Index and its key findings had been reviewed by the ministry, and we find that the information is valuable as it can help policy makers and developers work hand-in-hand to build more houses that are not only accessible. but which can appreciate in value,” he said.
Abdul Rahman hoped that other property developers and the academia can carry out similar surveys in the country.
Based on the findings, Sime Darby said that 68% ofplanned housing schemes in the Klang Valley were in the accessible range.
“We intend to utilise the results to develop innovative, high quality products that are accessible and meet market needs,” said Sime darby Property managing director Datuk Seri Abd Wahab Maskan.
The Housing-Income Index was developed to gain a better understanding of home-owner profiles, specifically household incomes and spending patterns in relation to owning a home.
The study covered 1,529 respondents, of whom 1,183 were home owners at 12 locations: Bukit Jelutong, Denai Alam, Bukit Subang, Bandar Bukit Raja, Subang Jaya, USJ, Putra Heights, Ara Damansara, Mont Kiara, Melawati, Kajang and Nilai.
PETALING JAYA: Affordable homes are still available in the Klang Valley but many areas with houses priced around RM400,000 and below are not preferable to buyers.
Real-estate agent Michael Edward said areas such as Taman Sentosa and Taman Seri Andalas in Klang are examples where the houses are affordable but there are few pickers because it lacked security facilities and gated community features.
“Buyers want affordable pricing, safety and location when they buy a house. But most affordable houses that are available are usually under the older projects and may have a high crime rate. This puts off potential buyers,” said the Klang-based agent with Rina Properties.
Responding to recently-released Sime Darby Housing-Income Index, which said that one must have an average income of RM14,580 a month to afford a home in the Klang Valley, Edward said the survey probably interviewed respondents who owned properties in Sime Darby’s housing projects where prices were much higher compared to other areas.
“If other housing projects besides Sime Darby’s are taken under the survey, the average household income should be lower,” he added.
Describing the survey as “putting the bar too high”, real estate agent Jeremy Jones said the average household income of RM14,580 per month in the Klang Valley could be applicable to properties valued at RM950,000 to RM1.3mil in strategic locations.
“This is probably to purchase a double-storey house in areas such as Ara Damansara, USJ Heights and Glenmarie, Shah Alam where Sime Darby has developed its housing projects,” said Jones, who is attached to Ramdar Properties.
On whether selected areas in the Klang Valley remain accessible to potential house buyers, Jones said although there was affordable housing in various pockets within the Klang Valley, new buyers tended to look for a new environment and preferred to have their home within a gated-community.
“Therefore, choices for such housing become available to affluent buyers only,” he said.
On Monday, Sime Darby Property Bhd in collaboration with the Faculty of Built Environment of Universiti Malaya released the finding of a study that indicated that house buyers must have an average household income of RM14,580 a month to afford a home in the Klang Valley.
The study was conducted on 1,529 respondents aged between 21 and 60. Ninety-four per cent of them were married and 59% of them worked in the private sector.
Contributed by G. Surach The Star/Asian News Network