20 February 2014 - Sime Darby Property Berhad would like to clarify certain media reports following the launch of the Sime Darby Property Housing-Income Index done in collaboration with University of Malaya.

We would like to reiterate that the key findings in the Housing-Income Index are based on a group of 1,183 home owners in selected areas in the Klang Valley. It does not cover first time buyers. The findings were based on the average household income of respondents who already own homes in the specified locations.

As clarified by Assoc. Prof. Dr. Sr. Noor Rosly Hanif, former Dean of Faculty of Built Environment, of Universiti Malaya, according to the 12 study locations, the average monthly household income of the respondents who currently own homes ranges from RM9,360 in the Melawati area toRM20,160 in Mont Kiara & Duta Hartamas. Other locations such as North Klang has an average income of RM11,300.

 Therefore, the average income of homeowners in the 12 locations surveyed is RM14,580. This does not indicate the monthly income needed to afford a house in Klang Valley nor does it reflect the national average income level as defined by the authorities, he added.

Based on the findings, the current price-to-income ratio in the Klang Valley for those who are interested in purchasing a second home or upgrading, is 56 times the average monthly household income.

The Housing Income Index does not cover the topic of affordable housing as defined by the authorities. The study of affordable housing has been covered by various other bodies, including Universiti Malaya. This Index is complimentary to other research efforts to further understand the Klang Valley property market and further studies will be undertaken in the near future.

Basically, the Housing-Income Index aims to provide information on housing accessibility. With this in mind and based on information gathered from the study, homes in selected areas in the Klang Valley are still accessible to homeowners who may be looking to upgrade or to invest in a second home.