KUALA LUMPUR: The property sector’s recovery path remained uneven in 2021, albeit some green shots towards the fourth quarter with a marginal rebound in sales.
But the issue of overhang and unsold units remained elevated, coupled with the rising cost of living that would put purchase plans on the back-burner.
According to the Real Estate and Housing Developers’ Association, the sector was not spared from the spiralling effect of various movement restriction to stem the spread of Covid-19 in the country.
“As the industry was about to gain momentum, the full movement control order (FMCO) that took effect on June 1, 2021 and lasted for more than three months worsened the situation.
“Many business operations including construction activities as well as sales galleries had to once again halt their operations, thus impeding growth for the sector and its players,” it said.
According to the Real Estate and Housing Developers’ Association, the sector was not spared from the spiralling effect of various movement restriction to stem the spread of Covid-19 in the country.
The current low overnight policy rate of 1.75% since July 7, 2020, and the Home Ownership Campaign till year-end have helped shore up residential property sales, easing the overhang in the segment in the third quarter.
However, the association said despite business picking up since the FMCO ended in October, the overall market sentiment remained subdued while optimism remains on the horizon.
According to the National Property Information Centre (Napic), a total of 30,290 completed houses worth RM19.75bil were unsold in the third quarter of 2021.
By state, Johor has the highest number of unsold units (24% share) in Malaysia, followed by Kuala Lumpur (20%) and Selangor (18%).
By property type, over two-thirds (73%) of total unsold units are high-rise properties such as apartments, condominiums and serviced apartment.
Napic also pointed out that based on its collective data, over 70% of the unsold properties in the country were above RM300,000, which is the normal benchmark for affordable housing, pointing to an overhang.
This has led Bank Negara to warn that unsold properties in the country will remain elevated. — Bernama