Millennials Driving the Future of Housing: The Need for Affordable Homes
Rising property prices and economic uncertainties are making homeownership difficult for Malaysia’s younger generation. DOSM’s Current Population Estimates Malaysia 2021 reports 1.73 million individuals aged 10 to 40, with millennials set to shape the housing market. As affordability declines, many are forced to rent or rely on family support. Ensuring access to affordable homes is crucial to securing their financial stability and homeownership dreams.
Figure 1: Total of Overhang Units, H1 2022
Apartments and condominiums, despite having lower monthly costs, are largely targeted at the T20 group. With prices often exceeding RM300,000, homeownership remains a challenge for many in the M40 and B40 categories. This growing imbalance limits access to quality housing for lower-income earners. Bridging this gap is essential for a more inclusive and sustainable property market.
This report examines the high-rise property market in Timur Laut, focusing on Georgetown and its competitive landscape for Zigsaw Solution. Recent data shows that affordable properties dominate central zones, making up 55% of total listings. Meanwhile, premium and luxury units, priced from RM500,000 and above, account for 30% and are mainly located on the city’s outskirts.
Figure 2: The Relationship Between Monthly Housing Costs, Household Income, and Expenditure
This distribution highlights distinct market segments, offering key insights into current trends and potential opportunities in the region.
Figure 3: Distribution of High-rise Building in Timur Laut
A closer look at Timur Laut’s property market shows that condominiums are the most widely available housing option. About 65% are priced below RM300,000, making them a popular choice for first-time buyers and those seeking affordability. Offering a balance of accessibility and quality, these units are driving demand for high-rise living in the region.
Figure 4&5: Number of Property Listed and Growth Average Price in Timur Laut
A closer look at Timur Laut’s property market shows that condominiums dominate across all regions. Notably, 65% of these units are priced below RM300,000, making them a popular choice for first-time buyers and those seeking affordable housing. In Georgetown, most high-rise properties are listed below RM500,000, offering budget-friendly options in a prime urban area. This pricing trend highlights the growing demand for accessible and affordable high-rise living.
Figure 6&7: Number of High Properties by Price Range in Georgetown and Index Breakdown by Facilities
Timur Laut boasts strong accessibility to essential services, with hospitals (99.23%), clinics (95.20%), and mosques (92.75%) leading the way. Banks (90.76%), schools (87.93%), and shopping malls (81.87%) also rank high, ensuring convenience for residents. However, public transport stations (62.69%) and convenience stores (56.55%) remain areas for improvement.
While Georgetown offers relatively affordable housing, limited public transport and fewer convenience stores pose challenges. Young professionals may benefit from prioritizing homes with better transit access. Strengthening infrastructure could further enhance Timur Laut’s appeal as a prime residential and investment hub.