by BERNAMA/ pic by TMR FILE
THE National Housing Department is reviewing the household income report and the new poverty line income (PLI) so that house prices can be adjusted to income for house ownership, the Dewan Rakyat was told today.
Deputy Housing and Local Government Minister Datuk Seri Dr Ismail Abd Mutalib said the study is being carried out in line with the announcement of the PLI and the new classification of households by the government.
“(Now) the interpretation and method of measuring affordable housing in Malaysia take the median multiple methodology as the main indicator to assess the ability to own a house.
“The formula we use (to determine) affordable house prices is median income x 12 (months) x 3.0, that is the house price rate determined under this affordable housing programme,” he said during a question-and-answer session.
He was replying to a supplementary question from Datuk Mohd Salim Mohd Sharif (BN-Jempol) on whether the current method of determining affordable house prices was in line with the people’s financial capabilities.