It is becoming increasingly difficult to find residential properties that cost below RM500,000 in Kuala Lumpur. What can be so surprising about that when a double storey terrace house in Bandar Puteri Klang is also going for almost RM500,000?
Very soon, if it is not already happening, you will find it hard to get a double storey house in Klang and Shah Alam for less than RM500,000 and single storey terrace house for less than RM200,000.
The increase in price of new houses happens everywhere in Klang Valley. A new single storey terrace house in Johan Setia Klang is selling above RM200,000 and in Jalan Kebun Shah Alam for not less than RM180,000. You still can find a single storey terrace house in area of Kuala Langat for RM150,000 if you are lucky.
I believe price of houses in Teluk Panglima Garang, Jenjarom and Banting will go up more than previous years with the opening of accessibility to the South Klang Valley Expressway at Teluk Panglima Garang. More development will take place, arising from the connectivity and accessibility via the Expressway.
There is only so much land in any particular area. For that much of land, only that much of houses can be built. Development in that area will reduce the supply of land available for building houses as years go by. This will cause the land cost to go up, thus contribute to price increase in the house.This is the same reason that causes the properties price to go up in KL and also in other areas in Selangor.
Very soon, if it is not already happening, you will find it hard to get a double storey house in Klang and Shah Alam for less than RM500,000 and single storey terrace house for less than RM200,000.
The increase in price of new houses happens everywhere in Klang Valley. A new single storey terrace house in Johan Setia Klang is selling above RM200,000 and in Jalan Kebun Shah Alam for not less than RM180,000. You still can find a single storey terrace house in area of Kuala Langat for RM150,000 if you are lucky.
I believe price of houses in Teluk Panglima Garang, Jenjarom and Banting will go up more than previous years with the opening of accessibility to the South Klang Valley Expressway at Teluk Panglima Garang. More development will take place, arising from the connectivity and accessibility via the Expressway.
There is only so much land in any particular area. For that much of land, only that much of houses can be built. Development in that area will reduce the supply of land available for building houses as years go by. This will cause the land cost to go up, thus contribute to price increase in the house.This is the same reason that causes the properties price to go up in KL and also in other areas in Selangor.
The price of houses is moving in one way - it's not going down. Without speculation, the price of property will still go up, but in a smaller percentage. This trend is irreversible. This is the economic reality, a universal one. If the price is not going to come down, we have to play catch-up to it. We cannot expect to buy tomorrow's house with today's income.
Economic issues have to tackled with economic ways. Any attempt to solve this with other ways will result in more people finding the dream of house ownership escaping them. Any attempt without also increasing the earning capacity of the people will result in the gap of affordability being widened. Subsidy in any form is to help to tide over a difficult situation, it can only be a short term measure. If the rakyat need to be subsidised for long term on a certain thing, anything, then in my personal opinion, the government is not doing a good job! This is the result of poor management and governance. Subsidies are expenses to a country. And it's going to cost Malaysian government a lot of money in housing related matters if the affordability issue is not addressed properly. Subsidy must be financed by taxes and revenues from natural resources. One day the natural resources will be depleted and finished, eventually. Whatever has been spent or invested - Are they able to take over the role and place of the natural resources to continue giving income to the country, besides the tax?
Economic issues have to tackled with economic ways. Any attempt to solve this with other ways will result in more people finding the dream of house ownership escaping them. Any attempt without also increasing the earning capacity of the people will result in the gap of affordability being widened. Subsidy in any form is to help to tide over a difficult situation, it can only be a short term measure. If the rakyat need to be subsidised for long term on a certain thing, anything, then in my personal opinion, the government is not doing a good job! This is the result of poor management and governance. Subsidies are expenses to a country. And it's going to cost Malaysian government a lot of money in housing related matters if the affordability issue is not addressed properly. Subsidy must be financed by taxes and revenues from natural resources. One day the natural resources will be depleted and finished, eventually. Whatever has been spent or invested - Are they able to take over the role and place of the natural resources to continue giving income to the country, besides the tax?
