Gov’t Should Strengthen Housing Policy, Address Price And Income Imbalance -- Senator

KUALA LUMPUR, Feb 26 (Bernama) -- The government should strengthen national housing policy with more effective price controls and better-targeted tax incentives to tackle the imbalance between house prices and the public’s income growth, urged Senator Michael Mujah Lihan.

He said property prices in major cities have surged to severely unaffordable levels.

“Although construction costs and property values have risen, the average wage growth has not kept pace.

“For young people and the M40 group, the challenge is not only the sale price. High living costs, existing debt commitments and tightening bank lending criteria make loan approval a major hurdle,” he said when debating the King’s Royal Address in the Dewan Negara today.

The senator said that many are trapped in a renter’s generation, where most of their income goes toward rent, and they end the day with no assets.

Therefore, he said, the issue requires a paradigm shift from all stakeholders, including developers and financial institutions.

“Developers should be more innovative in using technologies that reduce construction costs without compromising quality, while financial institutions need to explore more flexible financing schemes, such as broader rental-to-own programs,” he added.

-- BERNAMA