Housing and Local Government Minister Zuraida Kamaruddin: We are encouraging property developers to clear up their current stocks.
PETALING JAYA: Developers are advised to focus on affordable housing for new project launches to avoid an overhang in the property market, said Housing and Local Government Minister Zuraida Kamaruddin.
She said her ministry has been in talks with property developers to focus on building homes below RM500,000 as there is demand in the market for such products.
Zuraida pointed out that more than 80% of the current unsold properties are mainly in the high-end segment.
“We are encouraging property developers to clear up their current stocks and, if there are new development projects, we want them to concentrate on affordable homes that are RM500,000 and below because there is a need for them.“Of course, we won’t stop the developers from going for premium project developments, but this is our advice to them, ” she said at a press conference after the launch of Grand Maris Suite in Bangsar by BT Bina Group Sdn Bhd yesterday.
The launch also saw a presentation of cheque for the Rawang Transit Belia and affordable homes project in Rawang.
The affordable home project is a joint venture between BT Bina and Tan Sri Syed Yusof Tun Syed Nasir, who is known for the development of Concorde Hotel, Four Seasons Place project and Hard Rock Cafe in Kuala Lumpur.
The project consists of about 3,000 units of affordable homes, of which the first 1,000 units will be delivered in 2022.
Zuraida said the ministry is discussing with state governments to review property sale prices and the terms for foreigners to buy properties in Malaysia in a bid to reduce the overhang units.
“More than 80% of unsold units are in the high-end segment, therefore we have to review these units so that they can be sold and help to revive the economy, ” she said.
When asked about the take-up rate for the affordable housing segment, Zuraida said the government’s project received almost 100% take-up. However, she said for the private sector there are issues in take-up rate because of the locations of the projects.
“Due to the coronavirus (Covid-19), we are more flexible with contractors. Now, we are allowing some of the property projects to change from commercial lots to SoHo (small office home office).
“We allow them to make adjustments to their designs and units to accommodate the industry, ” she added.
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