Show me an example Shelter Over The Head: Control rising property prices in Klang Valley
Apa kesan pembukaan SKVE seksyen 2 pada prospek pembangunan Kuala Langat?

Thursday 24 May 2012

Control rising property prices in Klang Valley


When more money is required to buy a packet of 10 kilos rice you used to buy before, what does that mean? The amount,  grade and taste  are still the same. Basically, it means the value of the money has dropped, that's why you need to use more money to buy the same thing. When you have this thing happened in foodstuff, the same thing happens to houses.

Do you blame the developers for the increasing price of houses that happened in Klang Valley Selangor? Do you blame the stores that sell the rice which costs you more now? Like the rice seller, the developer just make their due and pass down the cost of the item to the consumers.

There will be no headache if what you earn also go up. Sadly, most of the times it doesn't: your value also drop with the currency. Only you need to pay more for the stuffs but you are not being paid more to buy the stuffs you must have to live like foods, clothing and a shelter over the head

The cooling off measures taken by the government to control the price of houses are aimed more at controlling the demand sides of the equation. Price will have to come down when less people are buying or so they believe.The demand does not go away even if you make it hard for them to buy it. People are not buying it because they can't afford it, they can't get loan for it and it's not they no longer want it. It's not true that the price drops because of drop in demand, it drops because of stifled demand. Stifled demand is still a demand and a more forceful demand when it is in action!!

We are not talking about a gadget or car where the demand drop because it has become outdated or pass the season. We are talking about house, a place to live, which is a necessity, where demand far exceed supply in Klang Valley Selangor. We are not talking about a situation where the middle income group, the young Malaysians in Klang Valley Selangor owning more than one house as shelter over their head. Majority of them don't have the luxury of buying one house to stay and another one or two to rent and collect rentals. For these reasons, I believe that the price of properties in Klang Valley Selangor under terrace house's category for the middle income group will not come down much with the cooling off measures.



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