Johor Consumers Movement Association has called on the state government of Johor to be more proactive in promoting and encouraging homeownership to overcome the property glut facing the state.
Johor Consumers Movement Association Chairman Md Salleh Sadijo said that while it is disturbing that over 70,000 homes around Johor Baru city and Iskandar Malaysia are unsold, unoccupied and abandoned, he said that the property overhang may be a blessing in disguise to help Johoreans acquire their own homes.
“All stakeholders at the federal and state levels must work together to overcome the property overhang in the state,” he said as quoted by The Star.
Aside from the state government, Md Salleh also urged developers to do their past as well.
“They (developers) should reduce their profit margin to make these unsold properties attractive to first-time buyers,” he said.
He also called on banks to ease their stringent procedures on loan approval, reported The Star.
“They should introduce a rental ownership scheme for the B40 and M40 groups, to ease their burden of paying the initial deposit,” added Md Salleh.
Meanwhile, Samuel Tan Wee Cheng, Director at KGV International Property Consultants (M) Sdn Bhd, believe the property overhang issue may be tacked with the concerted efforts of various parties.
“Local councils can also play a role in resolving the problem,” he said as quoted by The Star.
He noted that the cooperation of approving authorities, banks and private developers is needed to resolve the issue.
“Get the property agents in and do promotions,” suggested Tan.
Future developments should also be supported by independent market studies to ensure that the situation does not recur, he said.
“The current problem must be addressed to prevent future issues but it must be handled well.”
He underscored that the government should allow market forces to prevail, and facilitate only the process.
Johor would reportedly seek the best method to resolve the property overhang situation.
Mentri Besar Datuk Hasni Mohammad pointed to new homeownership policies as well as changing terms and conditions under the Malaysia My Second Home programme as among the factors contributing to the property glut situation.
Among the measures to be taken by the government to address the issue include introducing a rental housing programme for the younger generation and working with affected developers, he said.
Check out these latest project reviews today! Or read our helpful Guides to learn all about the various property buying, selling and renting tips!
