Housing is a basic need. However, the Median Multiple approach developed by Demographia International considers houses in Penang to be unaffordable.1 According to the National Property Information Centre (NAPIC), the median house price in Penang is RM280,000 as of Q2 2019, while the median monthly household income, based on the Household Income Survey 2016, is RM5,409. This means that half the households, especially first-home buyers, are unable to afford a home with a price tag of more than RM194,724.
There is a significant mismatch between the price range of new properties launched and the range that people can afford, leading to a high overhang of properties and a sluggish market. As of Q2 2019, Penang had a total of 3,929 overhang properties, an average increase of 73% per year from 2013.
