Page 408 - Special Topic Session (STS) - Volume 2

STS508 Suraya Ismail
increased the ownership rates for Malaysia. If we take the example of urban
Kuala Lumpur, where informal houses do not exist, the ownership rate is
53.5%.

Table 1: Percentage of home ownership in Malaysia, 2010
Percentage of home ownership
Total Urban Rural
Malaysia 72.5% 69.1% 81.2%
Johor 72.2% 69.6% 78.5%
Kedah 81.8% 77.2% 89.9%
Kelantan 80.5% 72.3% 86.4%
Melaka 72.9% 72.0% 78.5%
N. Sembilan 71.7% 68.2% 77.8%
Pahang 72.0% 65.8% 78.6%
Perak 75.7% 73.4% 80.8%
Perlis 78.1% 72.8% 83.5%
P. Pinang 77.5% 76.8% 83.5%
Sabah 68.1% 65.3% 71.7%
Sarawak 79.4% 75.9% 83.2%
Selangor 67.9% 66.9% 78.2%
Terengganu 78.5% 75.5% 82.8%
K. Lumpur 53.5% 53.5% -
Labuan 57.0% 54.4% 73.5%
Putrajaya 9.9% 9.9% -

2. Have household incomes have grown in tandem with house prices?
Figure 1 shows that household incomes have generally moved in tandem
with house prices since 1997. It therefore suggests that there should not be a
problem with housing affordability. However, Table 2 demonstrate the
limitation of this claim when house prices are divided into the different house
products specific to the states. For example, in Kuala Lumpur an average
terrace house price have increased 3 times from 2000 to 2016. Household
incomes however have not increased as much. Granularity of data would
depict the problems of affordability more clearly.

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