Supply and Demand of Housing Market Malaysia in 2010 Survey by REHDA

Housing market prices expected to increase 10-20% in next 6 months!?

I was surprised to read about it from an article in written by E. Jacqui Chan. The survey was conducted by The Real Estate and Housing Developers’ Association of Malaysia (REHDA).

At first, I thought our new properties in the market are over supplied until I saw this quote as below: –

“Based on these figures, we are looking at about 80,000 units of new houses in 2010. However, our basic housing demand annually shows that an average of about 150,000 to 180,000 units are needed. We also have to take into account the continuous migration into the cities and upgraders. We may face a shortage in the market soon,” said REHDA President, Datuk Michael Yam. Source:

House price increase tremendously recently. Many potential house buyers are talking and worrying about the property market burst. Some say it is a speculative bubble, the sky-high house prices have been over speculated. Some say it was due to inflation, population growth, and increasing material costs. Whatever.

However, the housing demand analysis revealed by Datuk Michael Yam as above is good for us to have clearer picture about the supply and demand of housing market in Malaysia.

4 thoughts on “Supply and Demand of Housing Market Malaysia in 2010 Survey by REHDA”

  1. kris

    I think it is wiser to have alook for yourself whether new finished development are occupied by buyers or left vacant 😛

    Seeing is believing

  2. Peter Yee

    My observation and opinion; generally, the momentum of property price increase may continue in tandem with the stock market for another period of time. The equilibrium point may be achieve with the gradual increase in interest rate,inflation and RPGT, thereafter property price may stabilized. The demand for the low cost apartments and middle cost landed residential property is in demand but the high end condos and bungalows may be in over supply in many locations.

  3. kris

    I guess currently the herd mentality is that property investment is the best way to fight against raging inflation in Malaysia. This attitude indirectly fan a inflation bubble, which will lead to higher BLR. Inversely, the property market maybe less attractive once stock valuations become cheap and attractive again.


  4. Chong Kong Hui

    Those in the industry trying and doing the painting of rosy picture.

    If more people believe the price is going up in next 6 months…. more people will be willing to pay for it – to make it happen.

    Peter is right, lots of higher-end condo is over-price and over-supplied. Our economy can not sustain the price. Just imagine if those people become jobless, who bought RM300-RM400 psf condo with almost 30-50% of their income, there will be lots of lelong and price will tumble significantly, just look at US.

    It is a Catch 22. To buy or not to buy. Kiasu if not buying now.