KUALA LUMPUR: Bank Negara Deputy Governor Abdul Rasheed Ghaffour has called on industry players in the private sector to play a role in supporting the national agenda for more affordable homes.

Speaking at the Cagamas-World Bank Affordable Housing Conference, Abdul Rasheed said property developers, as core industry players, should provide homes at affordable prices to facilitate home ownership in the country.

He lamented that houses in Malaysia are considered to be ‘seriously unaffordable’ by international affordability metrics, with some 74% of the 171,000 unsold residential properties in the country pricing out ordinary Malaysians.

To bring down costs, Abdul Rasheed suggested leveraging on more advanced and cost-efficient construction technology such as the Industrialised Building system.

“As cost of construction remains one of the major determinants of house prices, increasing efficiency and lowering costs can lead to a more inclusive housing market,” he said.

In addition, he said that developers must consider the aspects of quality, sufficient amenities and safety to cater for the modern needs of the public.

Turning to other players in the housing market, Abdul Rasheed noted the importance of financial institutions and policymakers in serving the public interest. 

“Financial institutions need to protect the public interest by ensuring that buyers do not borrow beyond their means and fall into financial hardship. 

“To this end, the financial institutions should also continue to provide effective and transformative financial services to ensure that society at large would benefit and thus, improve their quality of life,” he said.

As for policymakers, Abdul Rasheed called for greater coordination with the private sector to build a sustainable housing market. He added that this includes a healthy rental market, which offers access to housing at affordable prices.

While noting the various government initiatives to support the agenda, Abdul Rasheed said it is critical for Malaysia to establish an integrated housing database.

“The database would be important to provide timely information to help build an efficient housing market through greater transparency and lead to better planning by policymakers and developers. 

“The newly established single authority for affordable housing should play a proactive and strategic role in managing affordable housing in Malaysia.”

Abdul Rasheed also emphasised the important of financial literacy so the prospective buyer understands the financial commitments associated with owning a house, and whether they can meet those commitments.

Taking into account the job economy, he said better employment opportunities and income growth will put the buyer in a better financial position to purchase a home.

“To some extent, we have observed some encouraging trends, including the fact that house prices are now growing more in line with income growth,” he said.