Malaysia needs over 3 million houses

Developer Mah Sing Group revealed that about 69 percent of Malaysia’s 29 million population is below 39 years old. This means there are many people looking to buy their very first house, upgrade to a bigger property or purchase a second home.

Apart from a growing population, the tremendous demand for local properties is supported by easy access to credit, rising urbanization and low unemployment of just 3.2 percent.

However, home prices have been increasing gradually over the years with double-digit growth since 2012 due to a continued disparity between supply and demand.

“Malaysia’s supply growth for properties has been on a decreasing trend and this supply-demand gap has been widening in these recent years, with the annual supply growth in 2013 for the nation at only 1.9 percent,” said a company press release.

In comparison, current demand for houses is nearly seven million, taking into account Malaysia’s average household size of 4.31 people.

In Q1 2014, available supply was at 4.7 million units. Of this, 3.5 million houses were owned, while the rest where either rented properties or quarters, “creating a supply shortage of more than three million.”

To tap such a huge demand, Mah Sing plans to focus on affordable properties, with 81 percent of its residential launches priced below RM700,000.

“The strategy has proven effective, evidenced by townships such as Southville City@KL South achieving 90 percent take up for Savanna Executive suites and 80 percent for Avens Residence superlink homes.” 60 percent of the serviced suites at D’sara Sentral were sold, while over 80 percent of the two-storey link homes at Residence@Rawang were taken up

Upcoming projects include Star Residence in Subang and M Residence 3 in Rawang.

The former’s phase I comprises serviced apartment from 682 sq ft, priced from RM307,800, while M Residence 3 features two-storey link homes and two-storey Semi-Ds. “The first phase of link homes indicatively priced from RM700, 000 is targeted to preview in Q4 2014.”

Mah Sing is also preparing the second phase of Ferringhi Residence in Penang, while the landed homes at its Bandar Meridin project in Iskandar is expected to be previewed by 2H 2014.

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