Housing and Local Government Minister Reezal Merican Naina Merican revealed that 27,468 new housing units worth RM18.4 billion were unsold in the first quarter of 2021.
The minister told the Dewan Rakyat that he expects the homeownership programme to remain slow until the end of 2021, reported Free Malaysia Today (FMT).
Reezal attributed the slowdown partially to a mismatch in supply and demand, location, pricing as well as on the uncertainties brought about by the COVID-19 pandemic.
He added that the homes’ market value also depended on the increasing land cost and construction materials.
He made the statement in response to Azis Jamman (Warisan-Sepanggar) who asked for the number of unsold homes and the mechanism taken by the ministry to avoid the mismatch between supply and demand as well as to ensure that homes remain affordable.
Reezal explained that in order to overcome the problem, big data analytics will be used by the ministry to determine the real picture on the ground as well as to find ways to reduce the number of unsold units.
He shared that the ministry will also explore creating comprehensive housing policies at state and federal levels in order to boost homeownership.
Other measures to be taken include introducing guidelines for developers to submit feasibility studies during a project’s planning submission stage to prevent any mismatch in supply and demand.