KUALA LUMPUR – A large portion of unsold homes consists of Bumiputera lots, even after three years of completion, according to the Real Estate and Housing Developers’ Association of Malaysia (Rehda).
Speaking to Scoop, its president Datuk Ho Hon Sang said, based on the association’s survey, in the first half of this year, 47% of unsold Bumiputera lots were priced between RM500,000 and RM700,000.
“Meanwhile, 29% comprised houses priced between RM300,000 and RM500,000,” he said.
“Besides Bumiputera lots, Rehda members also reported low demand and rejection of final financing loans by banks as the main reasons for the surplus of unsold homes,” he said.
The average rejection rate for property loan applications is 31% for every 10
He further mentioned that members also faced challenges in construction during the first half of this year, with high building material prices having a critical impact on business operations.
Yesterday, the Housing and Local Government Ministry said that 24,642 housing units valued at RM14.24 billion were unsold for the second quarter of this year.
The ministry said that Bumiputera reserve lots are also included in the total number of unsold units, although it did not specify how many.
Meanwhile, Muhammad Iqmal Hisham Kamaruddin, Deputy Director of the Community Engagement and Industry Network Centre at Universiti Sains Islam Malaysia (Usim), has urged the government to mandate property developers to sell at least 80% of completed housing units before approving new construction projects.
He said that this is to prevent a surplus of homes in the market.
Muhammad Iqmal said the government should also ensure that property prices, especially for residential units, are affordable.
He added that house prices should be based on the average income of local residents, taking into account the state, area, and income distribution of households.
“For example, if the average household in a state can afford a property worth RM300,000, then the offered homes should not exceed RM300,000,” Muhammad Iqmal said.
“If 50% of the population in a state belongs to the B40 group, then 50% of the residential property offerings should be low-cost housing, based on the income distribution of households,” he added.
According to the latest report by the National Property Information Centre (NAPIC), in the third quarter of this year, a total of 21,968 unsold residential units were recorded, amounting to RM13.85 billion.
Homes priced between RM300,000 and RM500,000 accounted for the highest number of unsold properties, representing 31.9% or 7,003 units worth RM2.78 billion.
Homes priced between RM500,000 and RM1 million (29.4%) recorded 6,462 unsold units worth RM4.3 billion.
Meanwhile, properties below RM300,000 (27.3%) with 5,999 units or RM1.32 billion and properties exceeding RM1 million (11.4%) with 2,504 units or RM5.45 billion were also recorded.
The same report revealed that high-rise residential units were the most unsold, accounting for 13,455 units, over half or 61.2%, followed by terrace houses with 5,187 units or 23.6%, and others (3,326 units) or 15.1%.
Overall, NAPIC revealed that completed unsold homes decreased to 21,968 units valued at RM13.85 billion in the third quarter of 2024, compared to 22,642 units valued at RM14.24 billion in the previous quarter.
Muhammad Iqmal further stressed that the government needs to be committed to addressing the issue of property surplus, particularly for residential units.
“It’s not just about taking immediate action like reducing stamp duty and relaxing ownership requirements for foreign nationals without considering the long-term negative consequences if this continues,” he said. – November 22, 2024