RM300k and below form the largest segment of unsold residential units.
Developers are scratching their heads as to why the most affordable units priced RM300,000 and below form the largest segment of total unsold residential units.
Real Estate and Housing Developers’ Association (Rehda) Malaysia vice-president Zulkifly Garib (pic) said: “The overhang is an accumulation of many years. We need to understand the kind of products that comprise the overhang.
He said developers have sought the Valuation and Property Services Department and the Selangor Housing and Property Board to understand the residential overhang better.
“We want to dissect the figure to better understand the situation, ” he said.
Zulkifly said besides Rehda Selangor, other state Rehda offices have also sought to understand the situation.
Rehda Malaysia president Datuk Soam Heng Choon said some issues afflicting developers are due to the pandemic, and some are not.
The latest National Property Information Centre results showed the housing overhang resembles a triangle, with units priced RM300,000 and below occupying the bottom of the triangle, accounting for 31.7% of the total residential overhang, excluding serviced apartments and SoHos.
Next comes the RM300,001 to RM500,000 segment at 25.3%, followed by RM500,001 to RM1mil segment at 27.6%, while units priced RM1mil and above formed 12.5%.
Soam was speaking to the media about this weekend’s Malaysia Property Expo (Mapex). About 25 developers are participating in Mapex 2020, which will run from Oct 2 to 4 at the Mid-Valley Exhibition Centre in Kuala Lumpur.
About 8,000 units, valued at about RM12.83bil, will be offered for sale. Soam said this is based on information from 42% of participating developers. Financial institutions and government agencies will be among the exhibitors.
On the property market sentiment today, Soam said the coming months would “definitely” see a pick-up in sales.
Despite the conclusion of the moratorium, incentives are being given on “a targeted basis”, so barring a second wave of the coronavirus Covid-19 pandemic, he is “cautiously optimistic.”
The low interest rates will also help.
“We hope things will pick up in the first half of next year. Last year, we did RM37bil sales and have 57,000 transactions, which is unusually high. With the incentives in place, we should do well, ” Soam said.
Source: TheStar.com.my
Why I’m not surprised. Poor road connectivity, poor distribution of economy activity. Balik Pulau 200k also no one wants.
The rich is greedy and pressing the poor, they (the rich) have theit discreet tactict. This is all we need to see, Politicians is not doing work for the people. They care only physical development and failed to develope all race in the county, in all aspects, they care only for the rich, the rich from the start, where did they get to be rich, by manipulating, by practicing illigai businesses and many more, followed by politicians, and many more aspects of life!
Agreed!
that’s nonsense
Actually the answer is very simple, rich people don’t buy cheap houses, poor people don’t buy luxury homes, simple as that. If you have 100k poor home buyers, and you build 200k units of cheap homes for them, there will be 100k overhang, and no matter how “cheap” it gets, rich buyers won’t want to buy it.
On the same token, if you have 10k rich home buyers, and you build 50k units of luxury homes, you will have 40k overhang, and no matter how much discounts the developers are giving for these luxury homes, poor buyers still can’t afford it.
So essentially if you look at the overall overhang data, there is an over supply across all segments of property from low cost to luxury. Just that straight forward, understand what situation?????? Now these people are really chia par bo su cho.
And no matter how much you talk and discuss and analyse and talk more cock, there will always be an over supply after a bull run (as all developers rush to build and sell on good sentiment), followed by an under supply after a bear period (who would want to build in a bear market knowing that you can’t sell).
Agreed!
In Penang, Ideal can build affordable house priced about 400k at Tanjung Bungah and Island Glades, these houses were sapu by Penang people or others working long time in Penang. Don’t blame others for buying a more expensive house, they might only have one kid or none. Looking at B40, they usually have more kids than M40 or T20. So put your priority on the things you like and stop blaming. Rich people don’t buy cheap house in Penang because once you buy a house more than 500k, its almost impossible for you to get low-cost or low medium cost house based on current housing regulations.