RM500,000 sounds like a huge amount, but in property terms, it may not be enough to get you the home you want, depending where you live in Malaysia.
According to this article, house prices in cities including Kuala Lumpur, Johor Bahru and Penang have been rising ahead of the growth in wages. On average, salaries in Malaysia have risen 3.66% over 5 years. But, house prices rose faster at 7.88% over the same five years.
Similar research by Rahim & Co International Sdn Bhd shows that the average Malaysian would need to spend 5.3 years of their salary to afford an average house in Malaysia. But that number varies across different states.
For example, an average house in Johor requires 3.9 years of salary; Selangor needs 5.2 years; KL at 6.8 years; and Penang at 6.9 years.
This income-to-property-price gap is not as high compared to cities like Hong Kong, where the apartment can cost 18.1 times the average salary.
Will property prices get lower? Maybe not
Many people expected property prices to decrease due to the switch from GST to SST, because under SST, many construction materials are now tax-exempt, according to EdgeProp.
But, construction materials are only a small part of the overall property price. Factors such as market sentiment, location, facilities and developer brand can play a much larger role.
To understand what RM500,000 can buy you in terms or property across different Malaysian cities, we combed through various property listing websites. For example, in central KL, RM500,000 may only get you a 450 sq ft studio, while the same amount may get a large 4-bedroom house in Ipoh.
Here are some examples of properties you can get for RM500,000 across Malaysia:
450sq ft studio unit @ Chambers Residence, Jalan Putra [2km from KLCC]
548 sq ft apartment @ Nadayu 63, Melawati [9km from KLCC]
Type: 1 bedroom, 1 bathroom
452 sq ft studio @ Highpark Suites, Kelana Jaya [14km from KLCC]
Type: 1 bedroom, 1 bathroom
850 sq ft serviced residence @ M Centura, Jalan Sentul [6km from KLCC]
Type: 3 beds, 2 baths
Price: RM450,000 Source
Completion: End 2021
807 sq ft condominium @ Emerald Hills, Alam Damai, Cheras [11km from KLCC]
Type: Type C, 2 bedroom, 2 bathroom
1197 sq ft terrace/superlink house @ Alam Perdana, Bandar Puncak Alam, Kuala Selangor [30km from KLCC]
Type: 2-storey, 4 bedroom, 3 bathroom
1010 sq ft condominium @ Lakefront Homes, Cyberjaya [30km from KLCC]
Type: 3 bedroom, 2 bathroom
2340 sq ft superlink @ Maple, Bandar Baru Seri Klebang
Type: Double-storey, 5 + 1 bedroom, 5 bathroom
1498 sq ft townhouse @ Taman Daya Maju, Bukit Mertajam
Type: Townhouse, 3 bedroom, 3 bathroom
1206 sq ft terrace house @ Pearl Tropika, Simpang Ampat
Type: 4 bed, 2 bath
807 sq ft apartment @ D’Lagoon, Seri Austin, Skudai [10km from Johor Bahru city centre]
Type: 2 bed, 2 bath