The government should formulate a realistic national housing policy to ensure supply meets the real demand of the market, says expert.
The policies also need to be discussed with stakeholders before implementation so that all parties will benefit when implemented, says Sr Samuel Tan, Executive Director of KGV International Property Consultants. Tan was responding to questions from Asian Property Review on the continuing market slump in Malaysia. “In short, any measures taken by the government must be pro-active and preventive rather than reactive in that they should be taken before any problems arise.”
“For example, the government should be able to anticipate the stock available in the market by a particular period. If there is a possibility of oversupply, development approval rate should be slowed down and vice versa.” The government should also work with other stakeholders to lower the development costs, he added.
Tan noted that the current slowdown arose from the convergence of various factors – sentiment has been low since 2H 2014 due to reduced disposable household income caused by higher cost of living, market fear of oversupply, difficulty in obtaining end-financing, and a mismatch of supply and demand.