Show me an example Shelter Over The Head: New housing project around Shah Alam, Klang - Slowdown in sales
Apa kesan pembukaan SKVE seksyen 2 pada prospek pembangunan Kuala Langat?

Sunday, 1 April 2012

New housing project around Shah Alam, Klang - Slowdown in sales

The cooling measures by Bank Negara Malaysia and the tightening guidelines on housing loan by the respective banks are meant to bring down the household debts. This restriction will cause a drop in the approval of loans for the purchase of houses. Ultimately there will be a reduction in the house ownership across the board.

Semi-D houses and bungalows in the new housing project around Shah Alam, Klang and Kuala Langat will be affected just like the terrace and link houses in the new launches around Sungai Buloh, Kajang and Rawang.

This new ruling, even though does not single out the middle to lower income group, will inadvertently affect them the most. This category of house buyers is the customer base for affordable housing segment. Most of them, if not all, require financing to buy their house. This is the common knowledge - You tighten the financing, you slow down the purchase of the houses. What can the prospective buyers do, even if they believe the price may not come down? Nothing much!

Land around the towns is getting scarcer and it's value increases in every six months according to the Selangor Valuation and Property Services Department. World petroleum price is getting higher and higher. Labour cost is moving upward for sure.

The demand for houses by the middle and lower income Malaysians for affordable housing in Selangor are real. They buy the house for their own stay. When this people are denied the opportunity to buy the house because of the new ruling on loan, do you think the drop in purchases will really lead to drop in the price of these houses? The sales will slow down, no doubt. The number of people wanting to buy the house will not go down. The new housing projects under affordable and moderately priced category around Shah Alam and Klang cannot meet the demand. I therefore believe any drop in the price of houses under this category will just be temporary; I rest my case.

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