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Property inventory worsening, but builders with unsold units still building


“For now, we do not think the risk of developers incurring impairment charges will be widespread, as property prices in the Klang Valley area are still holding up well.  “However, we are more cautious about developers who had bought their landbank during the peak cycle in 2012 to 2014, as their land cost, and hence holding cost, would be much higher," RHB Research said.

“For now, we do not think the risk of developers incurring impairment charges will be widespread, as property prices in the Klang Valley area are still holding up well. “However, we are more cautious about developers who had bought their landbank during the peak cycle in 2012 to 2014, as their land cost, and hence holding cost, would be much higher," RHB Research said.

PETALING JAYA: The level of unsold property inventory is continuing to worsen despite the fact that developers have been aggressively unwinding their unsold units over the past two years.

RHB Research in a report yesterday said a number of developers have still launched various new projects to boost property sales despite holding slow-moving inventory and existing projects.

   

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