It's not spending money on avocado toast and hipster coffee that's stopping millennials from buying houses. It's probably because many Malaysians are not aware that thousands of affordable houses do exist in Klang Valley.
Quoting Real Estate and Housing Developers’ Association (REHDA) president Datuk Seri Fateh Iskandar Mohd Mansor, a report by The Star stated that affordable houses costing between RM200,000 and RM250,000 are still available for sale across Klang Valley.
In fact, Fateh Iskandar said that "units exist by the thousands across the country", but most buyers do not know about it.
“We know the houses are there. We need one authority to provide the big data so people are aware that these properties are available throughout the country. Although financing is an issue, there has to be awareness that these units are widely available,” he added.
There's a legit reason why most buyers are not aware of the existence of these affordable houses. The Star's own survey found that houses in Klang Valley within that price range are located more than 30km away from the city centre.
The paper's map search results found that houses within the RM200,000 to RM250,000 price range are mostly located in Kajang, Bukit Jalil, Kepong, Setia Alam, Cheras, Klang, and Cyberjaya.
Depending on its location, affordable housing units typically come in sizes of between 662 square feet and 1,635 square feet for a double-story house, most of them fitted with three bedrooms and two bathrooms.
As most affordable housing is located in the outskirts, it is often not on the radar for first-time buyers who prefer houses in popular locations like Hartamas, Damansara, or Kuala Lumpur city centre
The Star cited an industrial source who revealed that even those who registered for government's affordable housing programmes could be quite picky.
"The potential buyer may be unhappy with the location or the unit. Or those selected may not be eligible for the financing they want. Or they already own property," said the source, adding that the margin for affordable housing is low or non-existent.
On the other hand, Bank Negara Malaysia recently revealed some hard truths on why Malaysians are not able to afford houses despite the existence of affordable housing programmes: