Tuesday, 23 October 2018

Unsold Homes at Record High!


According to Preliminary Property Market Brief 2018, the slow property market has led to an increase in residential overhang. As of June 2018, 29,227 units worth RM 17.24 billion were unsold, an increase of 18.1% in volume and 10.2% in value compared to the same period in 2017. The bulk of properties are priced between RM 0.5 million to RM 1 million, valued in total at RM5.2 billion.

Johor leads the overhang, followed by Selangor (4,694 units) and Penang (3,958 units). As of end June 2018, there was 21.6 million square meters of existing office space. Another 3.2 million square meters will be incoming or planned for the near future.

The expectation is that the property market will improve in the second half of 2018 or first half of 2019. This is according to National Property Information (NAPIC) Director Badru l Hisham Awang. Is that possible?

Only if, the economy improves strongly, in the next 6-9 months, sentiment is positive, foreign purchase is significant and pricing is seen as value for money!

Reference: The EDGE Financial Daily,12th October 2018.

Source: NST


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