Government expects the population in Greater Kuala Lumpur will grow from six million to 10 million by 2020 under the Economic Transformation Programme (ETP). By that time, we will need additional one million new houses in Greater KL/Klang Valley.

This is not a new story, market has been talking about this since 2010, in fact. But I feel that we should aware about the trend, that’s why we come back to this again to pass the message to our new readers here…

2010 – 6,000,000 people
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020 – 10,000,000 people

What does it means?
Additional 4,000,000 people / 4 people per house = 1,000,000 or 1 million new houses are needed by 2020

In other words, one hundred thousand of new houses have to be built each year to cater the huge demand.

Let’s see what is the figure we got from Alan Tong’s article, “Applying the brakes – made for the short term – can be dangerous”, published in thestar 12 May 2012.

According to the statistics published by National Property Information Centre, the primary market only managed to launch 49,290 new housing units nationwide in 2011, with only 12,705 housing units in KL and Selangor. This indicates there is a demand exceeding supply scenario that can result in future severe consequences.

Supply and demand. An interesting topic to be studied further, especially property investors.

Greater Kuala Lumpur Coverage
It is defined as an area covered by 10 municipalities surrounding Kuala Lumpur, each governed by local authorities – Kuala Lumpur City Hall (DBKL), Perbadanan Putrajaya, Shah Alam City Council (MBSA), Petaling Jaya City Council (MBPJ), Klang Municipal Council (MPK), Kajang Municipal Council(MPKj), Subang Jaya Municipal Council (MPSJ), Selayang Municipal Council, Ampang Jaya Municipal Council (MPAJ) and Sepang Municipal Council (MPSp). Source: Wikipedia

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