Insights: Malaysians are complaining that property prices are getting more expensive. But where do we stand?

Posted on

One of the highest recorded property transactions (as of 2014) with its price per sq ft in other nations for residential property (ranked from top to bottom):-

1. Hong Kong, China
Average price per square foot: 7,200 pounds (about RM 38,960)
Area of Subject Property – 5,200 Sq Ft

2. Tokyo, Japan
Average price per square foot: 5,000 pounds (about RM27,000)
Area of Subject Property – 16,000 sq. ft.

3. London, U.K.
Average price per square foot: 3,500 pounds (about RM 18,900)
Area of Subject Property – 7,900 Sq Ft

4. Paris, France
Average price per square foot: 2,900 pounds (about 15,690)
Area of Subject Property – 10,800 Sq Ft

5. Moscow, Russia
Average price per square foot: 2,800 pounds (about RM 15,000)
Area of Subject Property – 4,600 Sq Ft

6. New York City, U.S.A.
Average price per square foot: 2,700 pounds (about RM 14,607)
Area of Subject Property – 6,500 Sq Ft

7. Shanghai, China
Average price per square foot: 1,400 pounds (about RM 7,500)
Area of Subject Property – 5,400 Sq Ft

8. Singapore, Singapore
Average price per square foot: 1,200 pounds (about RM 6,500)
Area of Subject Property – 12,300 Sq Ft

9. Mumbai, India
Average price per square foot: 640 pounds (about RM 3,500)
Area of Subject Property – 6,800 Sq Ft

10. Sydney, Australia
Average price per square foot: 580 pounds (about RM 3,200)
Area of Subject Property – 19,400 Sq Ft

So where are we?
Average price per sq foot: Kuala Lumpur (RM 653 per Sq Ft)

Now that isn’t that expensive isn’t it? If you are still wondering how much would those luxurious house costs in overseas, simply multiply the area with the price per sq feet and you would get the Price of the House. The house that was sold in Hong Kong for RM 202,800,000 (ranked 1st) can simply buy you an average 10 story commercial building in Kuala Lumpur.

None the less, this is not a fair comparison as these exorbitant prices of houses are caused by several factors such as location (demand and supply), strength of currency, per-capita income (purchasing power) and cooling measures. The Malaysian Central Bank and Financial Team had been one of the most awesome regulatory bank in the world, having cooling measures and anti-speculation policies such as RPGT hikes and low-housing income schemes had assisted Malaysians to keep the prices from jumping up – to allow Malaysians to have the Malaysian Dream “A home, A Car and a Job”.

Whether or not prices of property in Malaysia is expensive, is highly disputable considering our per-capita income, demographics and other factors. However, these property records in overseas are simply insane.

Leave a Reply