Developers Upbeat on 2018 Prospects, But Currently Worry Over High Number of Unsold Units

Pavither November 30, 2017

 
Real estate developers in Malaysia are currently facing issues this year, one of which is a large number of unsold completed houses, but they are bullish that the market’s situation will improve by 2018.

“Everyone builds, thinking the market would be good, but now we are facing a bit of a headwind,” said Sunway Iskandar Chairman Tan Sri Dr Jeffrey Cheah.

But with the correct policies and interventions from the government, he is confident that the mismatch in supply and demand in the residential sector could be addressed.

“All of us are facing challenges. But, I think the government is very proactive, and is now looking at unsold units as well as how to help developers.”

According to UEM Sunrise CEO and Managing Director Anwar Syahrin Abdul Ajib, the prevailing supply and demand imbalance is caused by out of place housing projects.

“We see at times development in areas that are not suitable due to a lack of infrastructure and such. In the case of UEM Sunrise, we consider areas with existing infrastructure and where people want to go to such as Putera Harbour and Nusa Idaman.”

The duo said this after officiating the opening of the new Coastal Highway Southern Link (CHSL) in Iskandar Puteri on Monday (27 November).

The 5.2km road, which connects the Second Link Expressway with the Iskandar Coastal Highway, halves the travel time to five minutes from Medini to the Sultan Abu Bakar Customs, Immigration and Quarantine Complex.

The comments from Sunway and UEM Sunrise follow a report from Bank Negara Malaysia (BNM) on 17 November that the number of unsold dwellings across the country had reached a record level of 130,690 units in Q1 2017.

This is not only the highest level in ten years, but exceeds the historical average of 72,729 units per annum between 2004 and 2016. Residences costing more than RM250,000 also accounted for 63 percent of these properties.

By proportion, Johor saw the largest number of unsold units at 27 percent, followed by Selangor (21 percent), Kuala Lumpur (14 percent), and Penang (8 percent).
 

Image sourced from MalayMail Online

 
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

WILLIAM LIM
Dec 01, 2017
In any other industry the way forward is to reduce prices.... development operating profits are still one if the highest of any industry... min of 40% to 70%... but developers will experience severe cash flow if reduce prices below the bumiputra quota.... the developer will go bust due to no cash to pay vendors....left with 40% unsold Bumi quota stock... could this be the real problem.... the continuous upgrading of authority planning and development requirements for green...retention pond... car park... set back etc... all contribute more to increasing costs and reduced numbering units per care effectively raising house prices
POST COMMENT

You may also like these articles

Maybank Beginning to Acknowledge Home Ownership Unaffordability

  In a bid to address the lack of down payment issue faced by most home buyers, Maybank Islamic launched its own rent-to-own (RTO) scheme, which will be open to the public in Q1 2018.Dubbed HouzKEY,

Continue ReadingNovember 28, 2017

The Struggle of Ordinary Malaysians Face with Affordable Homes is Beyond Repair; Najib’s Affordable Housing Scheme is Hardly a Solution

  Hundreds of thousands of people apply for the 1Malaysia People’s Housing Programme (PR1MA), but many who are qualified still let this opportunity pass by for fear of not having enough leftover ca

Continue ReadingNovember 28, 2017

Feedback