IGLUS Action Research Exercise

Housing Issues in Urban Malaysia

IGLUS Executive Master, KL Module, 14 April 2017

• Anu-Ujin Lkhagvasuren
• Ezatul Faizura Mustaffa Kamal Effendee
• Konstantina Karydi
• Sidel Lima

© IGLUS 2017+
 HOUSING ISSUES IN URBAN MALAYSIA
New developments are expensive and exclusive with limited affordable options. There should be more affordable and
quality housing that is accessible to targeted segments of the society (Appendix 1)

Drivers
Growth in local population

Demand in a particular location

Ineffective regulation

High price Fiscal inflation

Challenges

Unattractive for
Development of new infra
developers to invest

Cost of living Foreign buyers

Quality of life High cost of building construction

Utilization of
existing assets
 HOUSING ISSUES IN URBAN MALAYSIA
New developments are expensive and exclusive with limited affordable options. There should be more affordable and
quality housing that is accessible to targeted segments of the society (Appendix 1)

Challenges Overall Plans Detailed Plans

Q3 2017 Q4 2017 2018 2019
1 Capping on house price based on average
a income (rent and sale) Implementation

Ineffective Regulations b “No-Vacant” policy

Implementation

c First-time buyer incentives

• 1st draft of
Implementation
f/work
2 • Define
• 1st draft of
Foreign buyers d Allocating max percentage for foreign investors vision guidelines
• Stakeholder Implementation
• Data
coordination
collection
3 • Phasing plan Review & update
• Data
e Decentralizing of services (CBD) plans
Demand in a particular area analysis
(e.g. city centre) 1st phase
f Improving supporting infra (mobility, telecoms)
implementation

4
First pilot study
g Industrialized Building System (prefab)
High construction cost
h Self-help housing scheme First pilot study
Appendixes
 Appendix 1

The Malaysian government has

identified affordable housing issue as
one of the problems to be addressed in
the 11th Malaysia Plan.

Source: 11th Malaysia Plan

Appendix 2

 Currently there exist 40 per cent gap between the demand for affordable housing and its supply in the country
(Khairie, 2013; Lim, 2015 ).
 According to the Department of Statistics Housing Income Survey (2014) Malaysian median income stood at RM
4,500 signalling households are unable to afford houses priced higher than RM300, 000 (DOS, 2014). While based on
the National Property Information Centre report (2014) only 31.7% of the housing units built in the year 2014, had a
price tag lower than RM 250,000 (NAPIC, 2014b). Thus, evidently the income pattern of the middle income
household finds it challenging to keep pace with the rising cost of housing unit and thereby the need for affordable
housing has become more vital than ever before.
 In response to this issue, the Malaysian government undertook numerous initiatives to assuage the rising cost through
several projects

Malaysian Affordability Housing Policies Revisited. Available from:

https://www.researchgate.net/publication/305309415_Malaysian_Affordability_Housing_Pol
icies_Revisited
[accessed Apr 13, 2017].

http://www.starproperty.my/index.php/articles/investment/malaysia-affordable-housing-gui
de-20162017-part-1/

http://www.starproperty.my/index.php/articles/investment/malaysia-affordable-housing-gui
de-20162017-part-2/
 IGLUS Action Research Exercise
Housing Issues in Urban Malaysia

IGLUS Executive Master, KL Module, 14 April 2017

• Anu-Ujin Lkhagvasuren
• Ezatul Faizura Mustaffa Kamal Effendee
• Konstantina Karydi
• Sidel Lima

© IGLUS 2017+