According to the National Property Information Centre, the average price of a condominium or apartment in the Batu district in Kuala Lumpur is RM735,000, while a similar property in the Setapak district, also in Kuala Lumpur, costs RM430,000.

In Selangor, a terrace house in the Petaling district costs RM750,000, while the same property type in Sabak Bernam, which is on the outskirts, is priced at RM330,000.

A bank manager who requested anonymity said workers aged between 24 and 30 typically have lower incomes and cannot afford to buy properties in central areas.“If you are working in Kuala Lumpur and looking to buy a property nearby but are earning, say between RM2,400 and RM4,000 (monthly), you could not afford any property there,” he said.“If the price of the house is around RM500,000, you have to earn at least RM4,600 to own it.”

He said that typically, banks would request that they apply for a joint loan with their partner or parents.

He said banks also look into the debts people have, while the maximum loan eligibility is up to 70% of their monthly income.

“Some may have a car loan, a student loan and a credit card (debt). So, what’s left of their income for loan eligibility is not much to afford a house priced between RM350,000 and RM400,000.

“That’s why most prefer to rent instead of buying a property,” he said.

The banker said cheaper houses are located further away from the city centre, but it would cost more to travel to their workplace.

He proposed the government come up with rent-to-own schemes so that young people can afford to buy property closer to their workplace.

When determining eligibility for a loan, he said banks would also consider the person’s working tenure, which must be at least two years, the type of company and the industry they are working in.

“Those working as gig workers or on a contract basis are not so favoured by banks as these jobs are less stable, especially if they are impacted by the pandemic or financial mishaps,” he said.

He added that banks also look into a person’s credit scoring, such as CTOS.

“If your record shows that you’re always looking for credit facilities, it means you are not financially secure,” he said.

To get extra income and be more eligible for a loan, he advised young people to apply for an ASB loan as soon as they join the workforce.

“Your ASB dividends can also be a source of income,” he added.