73% of unsold units nationwide are affordable houses
The Housing and Local Government Ministry recorded a property overhang of worth RM22.5 billion in unsold houses nationwide, with 73 per cent of them comprising affordable houses priced at RM250,000 and above, said its minister Zuraida Kamaruddin.
She said the government had discussed the matter with the Malaysia Real Estate and Housing Developers’ Association (Rehda) and developers to organise an exposition on house ownership, as was carried out in 1998-1999, to sell the houses.
She was responding to a question from Fong Kui Lun (PH-Bukit Bintang) on measures taken by the ministry to address the problem of unsold houses due to problems of buyers obtaining financial loans from banks and financial institutions.
Zuraida said the ministry had also discussed with various quarters, including Bank Negara, to get them to help by providing home financing scheme to make it easier for the people to obtain housing loans.
Source: Bernama
If already overhang why still building a lot of them? Why not sell off all the old stocks first then only build the new one according to demand? All the while I thought there was insufficient supply of affordable houses as there’s always some government officers giving promises that they will build thousands of affordable houses by year 20xx, so I mistakenly thought that there was a lack of supply but now the actual fact is 73% unsold. I just don’t understand.
The main culprits are banks ! They always say “cautious policy” is good for all ? No default rate is for the good of the public not for them ?
But do take a look at their annual a/c when they make tons while we suffer along !
@AliceN
You don’t understand because someone along the way “screwed up” this piece of news. I am not sure if Housing Minister Zuraida really said “with 73 per cent of them comprising affordable houses priced at RM250,000 and above”, or the reporter heard her wrongly.
According to an earlier report by Bank Negara, it said “the number of unsold residential properties was at a decade high, with a majority of the units in the RM250,000-and-above price range, and estimates that average Malaysians can afford houses priced RM250,000 and below”. In other words, our gov considers anything above 250k “unaffordable”, but according to this news, Housing Minister considers anything above 250k “affordable”.
A summary of unsold residential properties by Napic:-
(1) Total of 34,532 completed and unsold units valued at 22.67billion.
(2) Johor tops the list with 12,722 units (56% serviced apartments priced above 750k)
(3) Selangor #2 with 5199 units (a mix bag of everything at all price range)
(4) Kedah #3 with 3593 units (mostly landed house).
(5) Penang – 2610 units (mostly condos above 500k)
(6) KL – 2543 units (mostly condos above 500k and service apartments above 1 mil)
@Clearhead
Hah, looks like I was confused by the misleading article. I got a clearer picture now. Thanks for the clarification.
Whether RM250,000 price is the cut-off line for affordable price or NOT is not important.
If the overhang data is correct, then most importantly is cannot allow politicians, govt officers n developers to build more and more “affordable” houses RM250,000 and above until the old stocks are clear.
Bottom line, don’t oversupply and push it to limited buyers and blame the banks, BNM pulak.
@Vicky
700k condos can build or not?
@ClearHead
Can. Build for you to buy, ok ?
@Vicky,
Ok, thanks.