Malaysian homes are affordable, but not for Malaysians: Report

Cheap cars, cheap houses, cheap cost of living – but does it work out?

US-based urban development researcher Demographia releases reports that Malaysia has a “severely unaffordable” residential homes market. According to the report, a country rates housing as “severely unaffordable if it is 5.1x the median monthly income.

Malaysia’s housing has been rated at 5.5x above the median annual income. The median annual income of Malaysia is RM$4258 (S$1650) and their median housing price is RM$280,886 (S$108901)

Singapore is rated at 5.1x, not too far off. The Singaporean household median monthly income is S$7,870 according to the Department of Statistics. An average price of a HDB BTO 3-room is about $194k (


The Malaysian Government is responding by introducing a “Youth Housing Scheme” that waives down-payments and subsidise ownerships by up to RM10,000 for 20,000 married couples under the age of 40.

Said commentor YGTan, “…it (the Government) should build affordable housing on its land bank (definitely not at RM400k or above price range) instead of selling it to private developers or State Agencies for a profit. If Singapore can build HDB flats for S$150k – S$300k,  why can’t the Malaysian Government do so too when land in Malaysia is much cheaper”?


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