Consultant: Glaring mismatch between property prices and affordability

Association of Banks in Malaysia says first time home buyers must recognise the need to make sound decisions of their own affordability based on their financial circumstances.

KUALA LUMPUR: The mismatch between property prices and affordability is becoming more apparent as property price growth continued to far exceed income growth, a property consultant said.

Jones Lang Wootton executive director Prem Kumar said the mismatch between property supply and demand was very glaring as income levels were not able to support property prices.

"The rate of increase in property prices is greater than the rate of increase in employment income,” he told a press conference on the sidelines of the one-day PropertyGuru Malaysia Real Estate Summit 2017 in Kuala Lumpur on Wednesday.

The rate of increase was minimal compared to the rate of increase in terms of properties themselves, especially residential units, he said, adding that even joint loan applications by buyers to gain lending was reaching saturation point.

"Joint loans have long been leveraged by developers to sell the more expensive properties but they have not been able to catch up with the growth in property prices," he added. - Bernama