The latest statistics indicate that Bumiputera units form the bulk of unsold units that have led to the current property overhang. This may result in even higher prices for non-Bumiputera units as developers are likely to pass the additional cost of holding unsold Bumiputera units.
It was reported recently that there were 80,000 unsold Johor properties reserved for Bumiputera in 2017.
This is said to be due to the requirement in the state for 40% of all property units to be set aside for Bumiputera. Properties reserved for Bumiputera are also given a 15% discount for units worth RM1 mil and above.
According to the National Property Information Centre’s (Napic) Property Overhang Report for the second quarter 2018, there were 40% more unsold new residential units during the first half of 2017 than in the first half of 2016.
The number increased to 29,227 units, valued at RM17.24bil as of June 30, 2018. A year ago, it was 20,876 units, valued at RM12.26 bil.
Media Title: Focus Malaysia
Date: 29 Dec 2018