He said the problem with home ownership was not the availability of loans but the availability of affordable houses.
He said based on Bank Negara calculations those who earned RM5,000 and below a month could only afford a RM130,000 house.
Muhammad said he would, therefore, push for affordable housing. One option to owning a home was renting one that was affordable, he said.
“We are looking not only at people owning houses, but also renting houses, as seen in more developed markets,” he said at a press conference today at Bank Negara.
He said about 84 per cent of house buyers were first time buyers who did not have problems in getting bank loans.
“So, the problem is not about getting bank loans. What we need is a supply of affordable houses.”
He said Bank Negara was working hand in hand with the government to streamline home ownership criteria, especially for those just entering the job market.
House prices in Malaysia continue to rise, but at a slower pace this year. Housing transactions are slightly down and residential construction activity is slowing.