Affordability issue in buying property

AFFORDABILITY is expected to continue to be a burning issue this year and next until affordable housing gets off the ground in a big way.

The rise in property prices is one of three areas of concern highlighted by those who responded to Prime Minister Datuk Seri Najib Tun Razak's interactive platform “I want your views” on his blog www.1malaysia.com.my. Other areas include the rising cost of healthcare, cost of living and education. Tomorrow is the last day to air your views.

Overheard, a conversation between two property writers above the clicking of computer keys.

Thomas, a 30-something: “You know, all this talk about property prices going up is getting to me. For the longest time before 2009, prices of landed were moving at snail's pace. So they went up now, It's high time!”

Colleague: “You are only saying that because you have a double-storey in Setia Alam (in Shah Alam) and you bought it for RM200,000 when it was first launched.”

Thomas: “True. I wanted a freehold landed property. Not a condominium, not a leasehold. Those were my only criteria, and the price, of course. Much as I like to stay in Petaling Jaya or near the office, I could not afford landed freehold there. So I have to live further away.

“You have to cut your coat according to your cloth. If you want to stay near your office, near your parents, near your girlfriend, near the mall, make sure you have the money. You think I like to pay toll? I pay RM5.40 return every day.” Colleague: “But it is true, prices have moved up a lot. Look, I got this SMS on Thursday. A single-storey terraced 24 ft x 80 ft costing RM815,000 in Taman Tun Dr Ismail. Single-storey!”

Thomas: “Wah, catching up with Bandar Utama prices! And those are double-storey houses too. What to do. If people want to stay with rich people, they better make sure they are rich too. You know, people keep saying they cannot get houses for about RM300,000 in Petaling Jaya. That is not true. My friend bought an old apartment last year for less than RM300,000 in Bandar Sri Damansara. That is a Kuala Lumpur address. Just next door to PJ, and near The Curve. But he has to pay RM1.60 toll one way.”

Colleague: “But that is more than 10 years old!”

Thomas: “You say you cannot find something for RM300,000 in the Klang Valley, right? So I prove to you, I can. The trouble with most people is this, they want a new condominium. You think developers will launch units at RM300,000 something in prime PJ area now. No way! So if you want PJ, you have to buy an old unit. What is important is the location, location, location. So what it if it old?”

Colleague: “You gotta to change the plumbing and wiring. That will cost money.”

Thomas: “You mean the new pipes and eletrical wiring will cost an extra RM100,000? The problem with most people is this - they want something brand new. What's that affordable housing developer, SP something... ”

Colleague: “SPNB, Syarikat Perumahan Negara Bhd.”

Thomas: “Yeah, that one. They build affordable housing too. Just go there and register. I am sure, 100% sure, they will have something to suit everybody's budget. Not the rich ones. They don't have anything to suit their pocket.”

Colleague: “They don't market themselves well.”

Thomas: “You see, now you want to complaint about their lack of marketing skills. You want a roof over your head and according to your budget. So go there lah.”

Colleague: “I read in yesterday's business pages that the price of cement may possibily going up next month. That will mean higher prices again.”

Thomas: “Prices of property will always go up. It is just a matter of whether they go up by leaps and bounds or go up slowly.”

Colleague: “But in Japan, US and Europe, property prices are languishing.”

Thomas: “Those are developed countries. Asia is still growing and developing. We are a young population. Those are mature economies. We are emerging markets. Developers will always take the opportunity to raise prices. Why do you think developers continue to make profits the last couple of years? They also take the opportunity to increase prices. Sure, building materials and cost of labour went up. But all this talk of price spike also encourage them to launch at higher prices.

“PKNS (Selangor State Development Corp) launched double-storeys, freehold, 20 ft x 70 ft, from RM530,000 onwards. That is just next door to Setia Alam. SP Setia also launched their double-storeys, same size, at RM688,000. I want to buy in Alam Nusantara, but all sold out.

“You can complain, but there will be many people who will still buy. Prices will still go up. So be practical, cut your coat according to your cloth.”

> Deputy news editor Thean Lee Cheng has many practical colleagues who are wiser than their years.