Property consultants: Address structural issues

STRUCTURAL issues in the local housing market need to be addressed if the market is to advance into a more well balanced and sustainable one, property consultants concur.

A double-digit jump in the prices of houses of between 15% and 20% in the last two years and a spiralling cost of living has caused a widening gap between income level and price levels, and a resultant mismatch between disposable income and house purchase affordability. As a general rule of thumb, mortgage repayment should not exceed 28% of gross monthly income, but for many house buyers, they have no choice but to contend with much higher repayment amount leaving them with very little disposable income.