Housing development expenditure likely more than halved in 2017

PETALING JAYA (Oct 27): Development expenditure (DE) for the housing subsector is expected to be more than halved to RM870 million – or 1.9% of the total RM46 billion (DE) – in 2017, as the 1Malaysia People’s Housing Corporation (PR1MA) sources its financing from the market, according to the “Economic Report 2017/2018”.

* Budget 2018 highlights
* Residential take-up rose in 1H2017
* Residential overhang growth almost doubles in 1H17
* Average home prices rose in 1H17
* Non-residential property subsector up 4.9% to RM6.4b in 1H17
* Shop overhangs shot up 54.3% to 7,754 units in 1H17
* Purpose-built Office Rental Index continues uptrend in 2Q17
* Residential property loans grew to 8.8% of household debt as at July 2017
* Household debt repayment capacity remains strong as at end-July 2017
* Rail transport to drive connectivity

This compares with RM2.2 billion for 2016, which accounted for 5.3% of overall DE.

“However, allocations for People’s Housing Programme (PPR) and 1Malaysia Civil Servants Housing (PPA1M) continue to increase in enhancing house ownership among low-income earners and civil servants,” it said.