Rebalancing the housing marketBY THEAN LEE CHENG
Around the city and the suburbs, most high-rise units cost about RM1mil. Some of them remain untenanted and unoccupied for up to three years. While owners try to rent or sell their units, developers are also struggling to sell their completed units.
According to the National Property Information Centre’s (Napic) latest Property Market Status Report for the first quarter of 2017 (1Q17), launched units of condominiums totalled about 30,000. It comprises a third of total residentials launched.
A cumulative figure, it includes units launched for the quarter under review and from previous quarters.
About 5,000 units remained unsold, double that of a year ago, when there were 15,000 condominiums launched.
Serviced apartments are excluded. Starting 2016, Napic excluded serviced apartments from the residential sector. Serviced apartments are built on commercial land and are now categorised as commercial properties.
A third of the total residential overhang, or 28%, are condominiums.
According to Socio-Economic Research Centre executive director Lee Heng Guie: “After two years of decline (-12.8% in 2014 and -4.2% in 2015 respectively), total residential overhang surged 30.7% to 14,792 units at the end of 2016.”
This 14,792 units exclude the overhang situation in serviced apartments, which, since 2016, have been considered as commercial properties. If serviced apartments were included, the overhang in terms of units/ringgit value would be higher.
Lee says 1Q17 saw completed but unsold residential units totalling 17,809, a rise of 45.2% compared to the same period a year ago (12,268 units).
Source: The Star
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