Khazanah Research Institute says market consistently 'seriously unaffordable'

Khazanah Research Institute says the housing market has consistently been 'seriously unaffordable'. Its director of research Dr Suraya Ismail says, the housing market consistently scored above 3.0 on the affordability threshold indicating that it is 'seriously unaffordable'. KRI found that median house prices went up at a compounded annual growth rate (CAGR) of 23 per cent from RM170,000 to RM270,000 between 2012 and 2014. Median household incomes however grew at a CAGR of 11.7 per cent, less than half the rate of increase in house prices. Housing credit also makes up the largest proportion of total household loans, increasing from 36 per cent in 1997 to 60.5 per cent in 2023. Suraya says discontinuing housing mortgages exceeding 35 years or intergenerational loans can help rein in prices. She says reducing mortgage periods will make house prices more affordable, and price increments more bearable. Read more: https://shorturl.at/jGZYF ---------------------------------- #NST #NSTTV visit us at http://www.nst.com.my our Facebook http://www.facebook.com/nstonline more news at http://www.twitter.com/NST_Online and also http://www.instagram.com/nstonline