by IZZAT RATNA/FILE PIX
Kedah has experienced the first overhang status in history with 3,554 units of unsold stocks recorded in the first quarter of 2017 (1Q17) to 3Q17, says Valuation and Property Services Department director general Nordin Daharom.
“This is a new phenomenon, which has never happened before—indicating that is a large mismatch between pricing points and location,” he said at the 11th Malaysia Property Summit 2018 in Kuala Lumpur today.
“However, I do think that this is a temporary matter and will see recovery from next year onwards.”
Commenting on the market’s outlook for 2018, Nordin said the property market is expected to remain soft, but is supported by policies initiated by Bank Negara Malaysia (BNM) to help contain price escalation.
“At the moment, loan-to-value (LTV) ratio is still capped at 70%. Hence, we hope the measures introduced by the central bank would stay.
”Additionally, the government’s constant support for the housing sector, coupled with major infrastructure projects are also expected to be a catalyst for the property sector,” he said.
The property summit was officiated by Deputy Finance Minister II Datuk Lee Chee Leong.
Lee said in his keynote address that the positive growth in the Malaysian economy with 6.2% gross domestic product (GDP) recorded in 3Q17 and the 5.5% and 5.8% GDP projections for this year by the World Bank and other economic experts would be the driving factors to aid in the sector’s recovery.
“This indicates that the overall sentiment is expected to improve, which will have a positive ripple effect on the property sector as well.
“The government’s move to freeze new commercial and high-end residential projects and to review them on a case-to-case basis are also expected to help stabilise the market,” he said.
Among two other states that recorded the highest unsold residential status for the period under review were Selangor with 3,596 units of high-rise developments priced above RM500,000, as well as Johor with 3,901 units of combined landed and non-landed hoises priced above RM300,000. On the Kedah market, majority of the unsold units were landed houses priced between RM300,000 and RM400,000.