| In fundamental economics, we learn about the basics of demand and supply. When supply exceeds demand, the price of the particular goods will eventually fall and vice versa.
Moving away from economics, buyers have themselves to blame as well for prices skyrocketing. By owning a house, one is seen as successful in life. How often have we heard of youth being judged by whether they own a house by the age of 30? Nevertheless, I believe that banks have their standards and guidelines on approving loans. Banks cannot be too lenient, we must learn from history of what happened during the 2008 financial crisis and make sure it does not happen again.
Since the market cannot work itself, the government is expected to step in. In the Pakatan Harapan manifesto, they promised to build one million affordable housing in 10 years. Firstly, the income of buyers is still the same, but they are merely taking more loans, it is a short-term measure without solving the real issue of affordability. Secondly, if the government steps in every time there is overhang, developers will not be afraid to continue charging the same prices.