See Kok Loong, Executive Director of Metro Homes Realty Berhad and Deputy President of Malaysia Institute of Professional Estate Agents and Consultants (MIPEAC) doesn’t believe so and argues for the use of EPF monies to pay for monthly home loan instalments for the B40 group as a temporary solution for the affordability issue.
Q1 Based on the National Property Information Centre (NAPIC), as of 3Q18, the number of unsold homes in Malaysia has reached a new high of 30,115 homes worth about RM 19.54 billion. (The above figure is the unsold homes completed 9 months from CCC and exclude residential properties built on commercial land like serviced apartment, SoHo, etc.) Do you think there is an oversupply in the current property market or merely a mismatch situation?
See: It is both. There is a mismatch of the type and price for certain locations. Generally, there is an oversupply in the market e.g. in certain parts of Johor. (based on the population and number of units completed).
Q2 Recently, the government has come out with many initiatives such as:
- Launch of the National Housing Policy (DRN) 2018-2025
- KPKT’s first Home Ownership Campaign (HOC) in March 2019
- Bank Negara Malaysia (BNM) RM1 billion fund for Affordable Homes for two years
- Ministry of Finance (MOF) announcement on Stamp Duty waiver during the HOC for six (6) months
- Real Estate and Housing Developer’s Association Malaysia (REHDA) offer of 10% discount and more
- KPKT setting the lower ceiling price of affordable houses at RM300,000, etc.
What’s your view on all the above initiatives?