The overhang in property was considered a problem before COVID-19, yet the problem remains and can be considered a crisis now as the total value of the overhang has tripled with a doubling of the number of unsold units.
“In the last four years alone, the total value of overhang has tripled and the number of units has more than doubled,” said Datametrics Research and Information managing director and economist Pankajkumar Bipinchandrahad at the Association of Valuers, Property Managers, Estate Agents, and Property Consultants in the Private Sector of Malaysia 14th Malaysian Property Summit, yesterday.
According to the National Property Information Centre’s first-half 2021 (H12021) data, Malaysia’s property industry has a large glut of 57,154 units worth RM41.5 billion, which could grow if the problem is no action be taken.
Sunway University economics professor Dr Yeah Kim Leng said, on examining the data shows higher demands in the market for affordable housing compared to the medium-to high-end range housing, developers should be encouraged to shift their market towards affordable housing and highlights the importance to assume the rise in income will assist in curbing the glut in the high-end segment.
However, Malaysian property is still considered relatively resilient though the nation has been hit by the second-worst recession and hoping firmer property market next year driven by the economic recovery, said Yeah.
