Deputy Finance Minister Datuk Amiruddin Hamzah believes that data consolidation in the property market could stop the re-occurrence of the overhang problem. The data, to be provided by stakeholders including property developers and government agencies, would show the reasons why homes remain unsold.
“We would be able to know what contributed to the overhang situation and where the mismatch between the demand and supply is, either the mismatch in location, pricing or others,” said Amiruddin, reported The Malaysian Reserve.
“Then, the government could see if there is any way it can intervene to assist the market, to make sure the overhang does not happen again, and developers themselves could avoid being trapped in the same situation.”
For example, he said the government would be unable to help homes that are unsold because of unattractive location.
However, if demand is there but the homes are unsold due to buyers not getting a loan approval, the government could help by giving incentives and schemes such as rent-to-own.
Amiruddin noted that the data – which includes sales performance and launch of new schemes, transactions and construction activity – are among the barometers of the nation’s macroeconomy.
He emphasised that the data provided must be accurate to prevent GIGO (Garbage In Garbage Out) from occurring, which might give wrong signals to industry players.
Amiruddin also explained that the Valuation and Property Services Department (JPPH) of Malaysia should coordinate with relevant agencies to find an answer to the overhang issues.
“As such, JPPH can strengthen its roles through Napic in providing quality, up-to-date and accurate data to support the country’s property market. I urge all the data suppliers to continue providing quality and timely data as provided in the relevant Act,” he added.
JPPH DG Mohd Khairudin Abdul Halim noted there are now over 2,000 data suppliers located in the Klang Valley.
“The data and information provided by the data suppliers have helped the department in providing an accurate and comprehensive view of the property market and assisting the government in formulating policies particularly on practical and people-friendly homes,” he said.