Raine and Horne International Senior Partner Michael Geh expect transactions in the property market to increase this year despite the COVID-19 pandemic.
This comes as data from the National Property Information Centre (NAPIC) had shown an increase in transactions, he said.
“Based on NAPIC figures which showed a spike in property transactions in quarter three of 2020 (Q3 2020), I believe it will continue to spike in quarter four and into this year,” said Geh at a press conference with Penang State Exco Jagdeep Singh Deo at Komtar.
On Malaysia’s overhang or unsold properties, Geh noted that many of the unsold commercial properties in the Klang Valley are empty offices and lots within shopping complexes due to under-occupancy.
“As for residential properties, a lot of the unsold units are those located in undesirable locations and a high percentage are unreleased Bumiputera lots,” he said as quoted by Malay Mail.
“So, there is no overhang of all Malaysian properties, the overhang are only in specific locations, places that are not easily saleable so these overhang units will not go down when there is no demand for properties at these undesirable locations,” he said.
Meanwhile, Jagdeep said overhang units in Penang had been consistently dropping each year.
“The overhang units in Penang have seen a drop from 3,816 units in the second quarter of 2020 to 3,007 units in the third quarter,” he said as quoted by Malay Mail.
Penang also saw residential property transactions surge 123% quarter-on-quarter to 3,446 transactions in Q3 2020 from 1,545 deals in Q2 2020.
“This year will be a promising year especially with the economic recovery where a majority of the industries believe that the affordable housing segment will be the contributing factor to the recovery,” he said.
According to Jagdeep, affordable housing units continued to be offered to eligible applicants even during the movement control order.
“We saw an increase in applications for affordable housing units,” he said.
Jagdeep revealed that the state aims to build 220,000 units of affordable homes as part of the Penang2030 vision.
Since 2008, a total of 113,960 affordable homes have been planned, with 38,149 units completed, 18,519 units under construction and another 57,292 units under planning, he said.
Penang has identified five plots of land spanning nearly 73 acres, where it intends to build at least 10,000 affordable housing units.