Closing the housing affordability gap

Artist's impression of Bandar Cassia affordable housing scheme in Batu Kawan.

THE sharp jump in the prices of houses in the last two years has created a generation of Malaysians who cannot afford to buy their own property and the situation can potentially worsen if nothing is being done to close the housing affordability gap.

Property consultancy Knight Frank Malaysia managing director Sarkunan Subramaniam says the impending implementation of the Goods and Services Tax (GST) from April 2015 is causing a lot of uncertainties in the property market. Although residential properties that are for sale, purchase and rental will be GST-exempt, he says the higher development costs may be passed onto purchasers in terms of higher selling prices.