Property data could prevent overhang from recurring, says deputy finance minister

The data will provide what contributed to the overhang situation and where the mismatch between the demand and supply is

By FARA AISYAH / Pic By RAZAK GHAZALI

DATA consolidation in the property market could prevent the overhang situation from happening again Deputy Finance Minister Datuk Amiruddin Hamzah said.

The data, which would be provided by stakeholders including government agencies and property developers, would reveal reasons for homes to remain unsold.

“We would be able to know what contributed to the overhang situation and where the mismatch between the demand and supply is, either the mismatch in location, pricing or others.

“Then, the government could see if there is any way it can intervene to assist the market, to make sure the overhang does not happen again, and developers themselves could avoid being trapped in the same situation,” Amiruddin said at the appreciation ceremony for the National Property Information Centre’s (Napic) Klang Valley data suppliers in Kajang, Selangor, yesterday.

For example, he said the government could not assist homes that are unsold due to unattractive location.

However, if there is demand but the homes are unsold because the buyers could not get loan approval, the government could assist by providing incentives and schemes such as the rent-to-own.

Amiruddin said the data — including data on the construction activity, the launch of new schemes and sales performance, transactions as well as the rental market — are among the indicators of the country’s macroeconomy.

He is confident the data and information published by Napic is comprehensive and practical to be the indicators in the planning of property developments and establishing policies relating to the real estate market.

He said it is important to make sure the data provided is accurate to prevent GIGO (Garbage In Garbage Out) from happening, which could give wrong signals to the industry players.

Amiruddin added that the Valuation and Property Services Department (JPPH) of Malaysia should find common ground with relevant agencies to find a positive solution for the overhang issues.

“As such, JPPH can strengthen its roles through Napic in providing quality, up-to-date and accurate data to support the country’s pro-perty market.

“I urge all the data suppliers to continue providing quality and timely data as provided in the relevant Act,” he said.

JPPH DG Mohd Khairudin Abdul Halim said there are currently over 2,000 data suppliers in the Klang Valley.

“The data and information provided by the data suppliers have helped the department in providing an accurate and comprehensive view of the property market and assisting the government in formulating policies particularly on practical and people-friendly homes,” he added.

The best eight Napic’s data suppliers in the Klang Valley were awarded during the event including Sepang Municipal Council, IOI Properties Group Bhd, GM Klang Sdn Bhd, Prop Park Sdn Bhd, I&P Group Sdn Bhd, BH Realty Sdn Bhd, Lembaga Tabung Haji and City Properties Sdn Bhd.