By NG PAU LING pauline@thestar.com.my

PETALING JAYA: Malaysia homeownership might change more often in future to once every seven years on average due to the lack of inexpensive starter homes, said Rehda immediate past president and patron Datuk Michael Yam.

In the Rehda Institute CEO Series 2017, Yam said as the houses were relatively affordable in the past, one can afford a three bedroom units as their first home and live on the same property for the rest of their life.

“However, in the current circumstance, the homeowner might have to sell and move for four to five times in their life,” said Yam to the media during the event.

He added that starting from a shoe box unit, homeowners gradually upgrade to two bedrooms home and then a larger unit over time. Therefore, it is always recommended to invest in property that increases in value over time, so that the property can be a wealth creator and is easy to sell in future.

Malaysia homeownership might change more often in future to once every seven years on average in future, said Yam.

He also pointed out the limitation on the value appreciation of affordable home due to public perceptions and stereotypes.

“Buyers need rational thinking while making a home buying decision. Is it necessary to buy an affordable home? What is the price to sell off when you decide to move on?” asked Yam.

He said the government’s definition of affordable houses are those that priced between RM300,000 to RM400,000, which means the developers will shrink the unit sizes and sell it below RM600,000.

"Rehda Institute foresees a potential competition between public and private sector for the market share of affordable housing," said Ng.

On the other hand, Rehda Institute chairman Datuk Jeffrey Ng raised the concern over the potential competition between private developers and public housing agencies on the affordable housing market.

He said after the introduction of cooling measures in 2014, most of Malaysia’s developers switched their focus from building high-end property priced from RM1mil onwards to providing more affordable home products.

He added that as previously there was little interest in developing affordable houses, the situation has resulted in a shortage of such home in the market. However, the private developers will generate more affordable products to suit the market demand over time.

He said once the demand-supply gap is getting smaller, Rehda Institute foresees a potential competition between public and private sector for the market share of affordable housing.

“Given that government housing agencies such as 1Malaysia People's Housing (PR1MA) scheme are selling affordable housing at a lower subsidy price, the difference in price could threaten private developers in future,” said Ng, who said that it would create an unleveled playfield.

Ng added that the country’s young population continues to support the housing demand and more market players are tapping into the affordable housing market. Hopefully, it will not become an unhealthy competition.