IPOH: With Perak having the highest number of unsold or overhang properties in the country last year, the state’s Real Estate and Housing Developers’ Association of Malaysia (Rehda) is calling for a committee to be set up to identify the cause.
Perak Rehda chairman Raymond Chan said a report by the National Property Information Centre stated that there were 4,598 units of unsold properties in the state last year, followed by Johor with 4,228 unsold units.
“Perak has the highest number of overhangs in the country with 17.8% of a total of 25,818 units nationwide. Johor is the second highest, followed by Kuala Lumpur with 3,535 units and Selangor with 3,405 units.
“The number of overhang or unsold properties in Perak has also increased by almost two-fold last year, from the 2,312 overhang units in 2022,” he said at the opening of Perak Rehda’s new office by Mentri Besar Datuk Seri Saarani Mohamad here yesterday.
He also said the number of property transactions in Perak last year was 44,468 units, which were worth about RM11.3bil.
“In 2022, some 47,867 units worth about RM11.5bil were sold,” added Chan.
He urged developers in the state to conduct market studies first before launching any projects.
“This is to ensure the price and types of homes that would be built are what the market wants.
“It is also to prevent properties from becoming overhangs, which could cause cash flow issues for developers,” he said, adding that the state government is also urged to form a committee to identify the cause of unsold homes.
“We are always working with the state government and related agencies to ensure more people can afford homes.
“We will respond to the call by the state government to build more affordable homes for the lower-income (B40) group, ensuring that they can own at least one house,” he added.
Later, at a press conference, Saarani said the state needs to become more developed for the people to be able to afford homes.
“When we become more developed, more people will get jobs and money to buy homes.
“When there are more job opportunities, there will be a need for more houses,” Saarani said, adding that the Covid-19 pandemic had resulted in job losses and reduced income.
In response to Chan’s call for the state to set up a committee to monitor overhang properties, Saarani said they will discuss this with the state Housing and Property Board.
“We will look into it, as we do not want the housing industry to suffer losses. It also depends on people’s capability to buy homes,” he added.
Saarani said house prices could be lower if the Federal Government could control the import tax on building materials.
“Housing developers are still relying on the import of certain materials, including steel, with import tax being a factor in homes being expensive. Steel and a few other items are imported, affecting the selling price,” he said.
Saarani said this is something that has to be discussed with the Federal Government.
