RM3.8bil worth of properties yet to be sold in Johor despite increase in transactions
State Housing and Rural Development Committee chairman Sr Dzulkefly Ahmad calls for reforms in housing sector to address overhang or unsold properties while providing 100,000 affordable homes by 2023.
“We need to reform in terms of building, distribution, financing and reducing building costs. There are weaknesses which can be manipulated by unscrupulous developers,” he said, adding that so far some 134,195 affordable homes were yet to be built by developers.
Johor topped the list in the country with access properties, with some 5,988 unsold valued at RM3.8bil state-wide, The Star had previously reported.
Dzulkefly said among the properties not sold include service apartments and properties valued between RM500,000 and RM1mil.
“Based on statistics, there is a mismatch between demand and supply, especially with developers trying to make the most profits by building more high-end properties.
He said, “Statistics from the Valuation and Property Services Department shows that the overall property market was slowing down in 2018. However in Johor, the amount of transactions in 2018 has increased by 6% compared to 2017.”
“As for overhang or no sale units in 2018, there has been an 18.1% increase in volume. Property developers must play a role in choosing the right type of property to develop at the right time to avoid a mismatch between supply and demand. Now is the time to call for more properties that are worth between RM300 – 500k.”
“Developers play a very important role in stimulating the economy. We appeal to the government to relook at some of the present policies which may be outdated,” said Dato’ Ir. Steve Chong Yoon On, REHDA Johor Branch Chairman in a statement.
“There has to be a balance of property development in the market with some affordable homes, middle range, and high end homes included,” he added.