Written by: Henny Maherah
The Malaysian housing market has been bombarded by persistent challenges in recent years. The mismatch between housing demands and property developments is a key issue that needs to be targeted for a better outlook in the Malaysian housing market.
Mismatch of Housing Affordability and Availability
Property prices have consistently increased since 2009, resulting in overhang housing units. A total of 50,008 units worth RM34 million were left unsold in 2019.
The majority of these unsold units include SoHo units and serviced apartments. Despite the high volume of overhang units, property developers continue to embark on projects without regard for the target population’s purchasing patterns.
Possible Solutions From Public and Private Sectors
To counter this issue, developers are urged to conduct sufficient research of their targeted buyers, particularly in understanding the purchasing power of the population. Past efforts include the Housing Ownership Campaign (HOC) issued in 2019 to enhance sales of overhang units. From this campaign, 31,415 housing units worth RM23.3 billion were sold as reported by Housing and Local Government Minister, Zuraida Kamarrudin. The repeat of such state initiatives this year could further encourage the sale of the remaining overhang units available.
Through government efforts and more focused property development projects, the housing market in Malaysia could be improved, providing affordable homes for all.
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Source: New Straits Times