/// Contributor
Affordable Housing and
the Malaysian Middle-Class:
The Unmatched Demand
Dr. Daniele
Gambero
CEO and co-founder of REI
Group of Companies
Dr. Daniele Gambero is the CEO of
strategic marketing consultancy firm
REI Group of Companies. He holds
an MBA from L. Bocconi University in
Milan-Italy, Master in Communication
from the University of Michigan Ann
Arbour MI – USA, Ph.D in Marketing
Strategies and Communication from
L. Bocconi University and University of
Michigan.
With his vast experience in strategic
marketing consultancies, investment
studies, researches, property market
reports and business valuation globally,
the REI Group of Companies helps
Malaysian developers with business
solutions relating to design, concept,
strategic marketing and pricing,
advertising and marketing and sale
procedures for their residential,
commercial and industrial projects
since 2007.
Dr. Gambero’s lectures attract large
crowds due to his lively presentation of
serious topics with deep insight into the
Malaysian Property market since 2011.
Where Is The World Heading To
The demand for adequate and affordable housing has been dramatically growing worldwide during
the last 20 years. The World Bank and UN are estimating a growth of more than 40% in population by
2050 totaling a whopping 10 billion people. The global labor force will grow even faster by a good 60%
increasing from 2.4 billion today to more than 4.2 billion workers within the same time frame. Affordable
housing demand will raise everywhere becoming the big “social issue” worldwide and strategies and ways
forward have to be discussed and starting being implemented as soon as possible.
Malaysia will contribute to
this global growth with a good
12 million higher population
compared to the current 30
million. In other words by 2050
there will be more than 42
million Malaysians.
If we look at the current
housing situation and estimate
the housing demand only for
the next 6 years, till 2020,
based on existing stock and
current incoming supply of
houses (all delivered before
2020) there will be a lack of almost 3.5 million dwellings by 2020. Besides making the happiness of current
and future investors, the table below is showing how un-resolved is the issue of affordable housing
as almost 60% of the 3.4 million lack of houses will be generated by the Malaysian middleclass. These
numbers are underlining the urg ency in finding a solution but, before talking about possible ways of
replying to the big demand that will be generated the stakeholders should look into a clear definition of
what affordable house means and all the players in the Malaysian Property Market arena should take their
own responsibilities in terms of future (immediate) actions.
Existing Stock and Estimate House Supply and Demand by 2020
State
Kuala Lumpur
Supply of
Landed till
2020
113,005
Supply of Low
Cost till 2020
Supply of
High Rise
till 2020
156,915
251,854
Total Houses Supply
by 2020
521,774
Population
by 2020
1,870,000
Estimate Under
Supply of Houses
by 2020
101,559
Selangor
833,155
491,584
342,154
1666893
6,279,686
426,336
Johor
652,827
260,616
87,968
1001411
4,499,432
498,400
Penang
204,903
214,780
63,728
483,411
1,633, 703
61,157
Malacca
138,607
50,244
18,979
207,830
914,506
97,005
Negeri
Sembilan
265,638
90,725
47,461
403,824
1,276,244
21,591
Pahang
230,251
69,856
17,862
317,969
1,674,660
240,251
339,170
Perak
While the author makes reasonable
efforts to present information which
he believes to be reliable, the author
makes no representation that the
information or opinions contained in
this article is accurate and complete.
Readers are advised to seek specific
professional advice before acting on
the views.
64
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383,460
95,873
12,909
492,242
2,494,237
Perlis
19,804
9,294
1,602
30,700
243,400
30,150
Kelantan
67,511
12,722
4,189
84,422
1,533,613
426,782
Terengganu
91,254
43,173
1,026
135,453
1,045,864
213,168
Kedah
247,710
115,217
3,173
366,100
1,947,472
283,057
Sabah
98,335
62,930
41,618
202,883
3,443,107
485,738
189,640
51,915
14,893
256,448
2,543,759
252,304
3,536,100
1,725,844
909,416
6,171,360
31,399,685
3,476,669
Sarawak
Grand Total for
Malaysia