KUALA LUMPUR (Feb 21): Solving the much-publicised issue of overhang properties requires stakeholders from the private and public sectors to come together, said Valuation and Property Services Department (JPPH) director Ahmad Zailan Azizuddin.
“How can we all play a part to address this issue? For example, the National Property Information Centre has launched the Unsold Property Enquiry System Malaysia (UPESM) to provide information on the current status of unsold properties in each district in Malaysia.
“Thus, developers can check the status of unsold properties on the system before launching a project. The government has also taken steps to overcome this issue by organising a Home Ownership Campaign (HOC) 2019 to tackle the high number of unsold properties running for six months from March 1,” Ahmad Zailan explained.
He added that overhang properties are caused by issues such as a mismatch in pricing, affordability and the rising cost of living, thus properties at the right price and right places are needed to cater for the people living in that area.
“The government is also aware of homeownership issues which is why they have taken steps to enhance RUMAWIP to Residensi Wilayah with several improvements in place. We also feel there is a need for a special committee to monitor the cost of development to keep prices affordable especially for the M40 and B40 income group,” he highlighted.
As at 3Q2018, Malaysia's property overhang has hit an all-time high at 30,115 units worth RM19.5 billion.
Condominiums and apartments form the bulk of the uncompleted unsold units with a market share of 39.5% or 11,908 units in total.
Meanwhile, he said JPPH expects the property market in 2019 to stabilise in 2019, backed by improved market and household sentiments as well as a marginal increase in volume and value of transactions from 2017 to 2018.
Transaction volume of properties has increased by 0.6% from 311,824 units in 2017 to 313,844 units in 2018, while value of transactions has risen by 0.4% from RM139 million to RM140 million over the same period.
Ahmad Zailan was presenting his topic on Overview of the Malaysian Property Market at the 12th Malaysian Property Summit on the Property Market Outlook for 2019 organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).
EdgeProp.my is the media partner of the summit. — EdgeProp.my