BNM says housing supply and demand mismatch needs to be addressed

Governor Tan Sri Nor Shamsiah Mohd Yunus said house ownership could not be addressed by financing alone as most housing has become too expensive for many Malaysians.

"We need to address this too even as we embark on more innovative solutions, including dealing with the acute supply and demand mismatch, improving house price transparency as well as ensuring that a vibrant rental marketplace is in place for those who are not ready or do not want to own a house," she told reporters after announcing Malaysia's economic growth for the fourth quarter of 2021.

Nor Shamsiah said this when she was asked to comment on new developments in lending facilities after the central bank was told by the government to review home financing models in order to facilitate house ownership for the middle 40 (M40) and bottom 40 (B40) income groups.

On Thursday, Prime Minister Datuk Seri Ismail Sabri Yaakob asked financial institutions to ease financial access for the B40 and M40 groups to enable them to purchase People's Housing Project units and affordable housing.

Nor Shamsiah said banks have been highly supportive of house ownership initiatives with loan approvals of more than RM60 billion to first-time house-buyers in 2021.

"Of this, more than 60 per cent of the new loans (were) approved for the properties priced RM500,000 and below. On top of this, there are also numerous guarantee schemes to support home ownership, especially for the lower income group," she said.

"But we understand that since the pandemic, a lot of things have changed, including the reality around housing demand. Financing models may also need to be adjusted. For example, as remote working becomes more common, prospective buyers may (be) open to buying properties outside the city centre," she added.