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Housing undersupply to spur demand: Rehda
2013-01-15 09:54:08

Demand for housing will likely soar this year, following the deficit in housing supply for the past three years, according to Datuk Seri Michael Yam, President of the Real Estate and Housing Developers\' Association (Rehda).

“The population continues to grow by 2.3 percent per year, with over half of the population being under the age of 25, while household formation is at over 180,000 per year based on annual marriages,” he said.

While the fundamentals of the country\'s demographics and population growth could uphold the property market, this limited supply is a major concern.

“If there is no urgent increase in supply, there will be a spike in demand especially in the second half of 2013 once the government of the day is firmly in place and the positive effects of the Economic Transformation Programme (ETP) trickle down onto the average man on the street.”

He expects the housing crunch to be mitigated by “the anticipated supply from the various projects including Bandar Malaysia, Tun Razak Exchange and development of the Rubber Research Institute, Malaysia land in Sungai Buloh, coupled with the development rights above mass rapid transit stations.”

However, there remains a challenge to achieve a quick turn-round, considering the often time-constrained approval process, as well as the long lead time for construction and completion, he noted.

According to Yam, both the approval process and long lead time should be reviewed, considering the rapid increase in population, ageing concerns and booming urbanisation.