Housing Income Index does not cover affordable housing - Sime Darby

Sime Darby Property Berhad clarified that its Housing Income Index is to provide information on housing accessibility, especially for Klang Valley residents wanting to upgrade or invest in a second home.

The index does not cover first time house buyers, the company said in a statement, following criticisms of the survey.

The survey was done in collaboration with University Malaya.

"We would like to reiterate that the key findings in the Housing-Income Index are based on a group of 1,183 home owners in selected areas in the Klang Valley. It does not cover first time buyers," the company said in a statement.

"The findings were based on the average household income of respondents who already own homes in the specified locations," it added.

Former Dean of Faculty of Built Environment, Universiti Malaya Associate Professor Dr. Sr. Noor Rosly Hanif added that according to the 12 study locations, the average monthly household income of the respondents who currently own homes ranges from RM9,360 in the Melawati area to RM20,160 in Mont Kiara & Duta Hartamas.

Other locations such as North Klang has an average income of RM11,300.

“Therefore, the average income of homeowners in the 12 locations surveyed is RM14,580. This does not indicate the monthly income needed to afford a house in Klang Valley nor does it reflect the national average income level as defined by the authorities,” he said.

Sime Darby also said that the Housing Income Index does not cover the topic of affordable housing as defined by the authorities.

"The study of affordable housing has been covered by various other bodies, including Universiti Malaya. This Index is complimentary to other research efforts to further understand the Klang Valley property market and further studies will be undertaken in the near future," the statement read.