Unsold commercial properties worrisome, says Bank Negara

KUALA LUMPUR: The number of unsold properties has seen a respite amid the government’s Home Ownership Campaign (HOC) except for the commercial market, as it remains worrisome amid the new norms, Bank Negara Malaysia (BNM) Governor Datuk Nor Shamsiah Mohd Yunus said.

"The amount of unsold properties is still very high. It is about 170,000 units but it has been coming down but the level is still very high. The HOC that the government has introduced last year has helped clear some of these unsold units,” she said.

"But in terms of unsold properties, we are worried about commercial properties because even before the pandemic we had a very high supply office space and shopping complex.

"With the pandemic and greater online sales, more work from home arrangements, the need for office space and physical premises will come down and the demand will not be as high as before,” she told an editors’ briefing session on Tuesday.

So, in terms of unsold properties, BNM is much more worried of the unsold commercial space because the excess capacity in the market would be made much worse under the new normal.

"Luckily, the bank’s exposure to this segment is very small. It accounts to 3.2 per cent of the total loans,” she said. - Bernama