Housing prices to be changed in line with new poverty level

The housing ministry is working out a new formula to determine the prices of affordable homes.

KUALA LUMPUR: The National Housing Department is reviewing the household income report and the new poverty income level so that house prices can be adjusted to the appropriate income for house ownership, the Dewan Rakyat was told today.

Deputy minister for housing and local government Ismail Abd Mutalib said the study is being carried out in line with the announcement of the new poverty line and a new classification of households by the government.

“(Now) the interpretation and method of measuring affordable housing in Malaysia takes the median multiple methodology as the main indicator to assess the ability to own a house,” he said.

“The formula we use (to determine) affordable house prices is median income x 12 (months) x 3.0, that is the house price rate determined under this affordable housing programme,” he said during a question-and-answer session.

He was replying to a supplementary question from Mohd Salim Mohd Sharif (BN-Jempol) on whether the current method of determining affordable house prices was in line with the people’s financial capabilities. - FMT