AFFORDABLE homes could face a critical glut as incoordination between state and federal agencies has triggered worries of overbuilding and further dampens the recovery of the already reeling housing sector.
Presently, various agencies are involved in the construction of affordable homes which could ruin the overall supply in the segment.
Recent official figures showed that unsold residential properties rose in the first six months of this year, with condominium and apartment units priced between RM200,000 and RM300,000 accounted for a large portion of the unsold units. There were 32,810 overhang residential units worth RM19.76 billion.
The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) said besides 1Malaysia Housing Programme (PR1MA), there are about 20 national and state agencies involved in providing affordable housing.
“There is no coordination among these national and state agencies, thus resulted in duplication and affordable housing built close to each other,” PEPS said in its Budget 2020 wishlist last week.
The association has proposed the setting up of a national housing corporation on affordable housing.
Media Title: The Malaysian Reserve
Date: 07 Oct, 2019