Malaysia now has $5.5bn in unsold homes

Malaysia was home to 34,532 completed but unsold residential real estate units in the first quarter of the year, a volume valued at MYR22.26 billion (USD5.5 billion), according to government data issued this week, per The Star.

The figure marks a 67.82 percent increase from the MYR13.27 billion worth of unsold homes recorded in Q1 2017. Unsold units numbered around 22,175 during the period.

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Sales were slowest in the states of Kelantan, Kedah and Terengganu. Penang, Johor, Selangor and Kuala Lumpur were found to have had lower proportions of unsold units.

The overhang does not equal flagging demand though, some analysts contended. “You can't say there is no demand, because there is latent demand. But one reason for the overhang is because prices of these units are just too high,” said Property agency PPC International managing director Datuk Siders Sittampalam.Siders.

Granted, the malaise in sales is significant but not enough cause for worry, according to Knight Frank Malaysia managing director Sarkunan Subramaniam.

“With the level of transparency being shown by the Pakatan Harapan government, we will see more confidence in the economy. By next year, the overhang situation should reduce.”

Ref : Property Report