Real estate developers in Malaysia are currently facing issues this year, one of which is a large number of unsold completed houses, but they are bullish that the market’s situation will improve by 2018.
“Everyone builds, thinking the market would be good, but now we are facing a bit of a headwind,” said Sunway Iskandar Chairman Tan Sri Dr Jeffrey Cheah.
But with the correct policies and interventions from the government, he is confident that the mismatch in supply and demand in the residential sector could be addressed.
“All of us are facing challenges. But, I think the government is very proactive, and is now looking at unsold units as well as how to help developers.”
According to UEM Sunrise CEO and Managing Director Anwar Syahrin Abdul Ajib, the prevailing supply and demand imbalance is caused by out of place housing projects.
“We see at times development in areas that are not suitable due to a lack of infrastructure and such. In the case of UEM Sunrise, we consider areas with existing infrastructure and where people want to go to such as Putera Harbour and Nusa Idaman.”
The duo said this after officiating the opening of the new Coastal Highway Southern Link (CHSL) in Iskandar Puteri on Monday (27 November).
The 5.2km road, which connects the Second Link Expressway with the Iskandar Coastal Highway, halves the travel time to five minutes from Medini to the Sultan Abu Bakar Customs, Immigration and Quarantine Complex.
The comments from Sunway and UEM Sunrise follow a report from Bank Negara Malaysia (BNM) on 17 November that the number of unsold dwellings across the country had reached a record level of 130,690 units in Q1 2017.
This is not only the highest level in ten years, but exceeds the historical average of 72,729 units per annum between 2004 and 2016. Residences costing more than RM250,000 also accounted for 63 percent of these properties.
By proportion, Johor saw the largest number of unsold units at 27 percent, followed by Selangor (21 percent), Kuala Lumpur (14 percent), and Penang (8 percent).