THE demand for housing was underpinned by the rising number of households which have increased from 6.6 million in 2010 to 7.4 million in 2015 and a high proportion of young working age population between 24 and 39 years old. The demand is particularly strong especially among the low- and middle-income groups for affordable housing as a result of urban migration as more people leave for the cities in search of economic opportunities.
Because affordability is determined by income and price, many of these households are unable to get on the home ownership ladder. Between 2009 and 2014, average house prices rose at a compounded annual growth rate (CAGR) of 7.9%, exceeding the growth in average household income of 7.3% during the same period, according to Bank Negara.
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