Undersupply of affordable houses seen to worsen

Consequently, prevailing median house prices are beyond the reach of most Malaysians. This is primarily attributable to a gross mismatch between housing supply and demand amid diverging expectations between households and developers.

PETALING JAYA: The undersupply of affordable homes in the local property market is expected to worsen, going forward, due to demographic factors and current income trends.

Since 2012, the increase in house prices in Malaysia has outstripped the rise in income levels, according to Bank Negara’s Financial Stability and Payment Systems Report 2016.