Oversupply Melaka? Totalling RM254 million. ONLY 725 units OVER 10 years…

Melaka property investment? It is not the top 4 property investment destination in Malaysia but opportunities are definitely available. I would love to own a place there actually. Let’s hope some opportunities open up in the near future. Of course, I need to get ready the $$$ too. In fact, investment wise, it looks pretty safe to me, based on the overall unsold unit numbers. Melaka Chief Minister Datuk Seri Idris Haron said that there are a total of 1,163 units of residential and commercial properties in Melaka which have yet to be sold-to-date. This unsold units are the total over a period of 10 years. Yes, over a period of 10 years…. Where residential properties are concerned, there are a total of 725 unsold units or around 73 units of unsold properties every year. Total population of Melaka is close to 900,000. (Source: Google). The full article in TheMalayMailonline is here. 

He shared, “The number was released by the Valuation and Property Services Department for the second quarter report of last year and Melaka was among the states which recorded the lowest number of unsold properties. This shows that the development projects implemented in Melaka are in line with current demand and have no negative impact on the property development industry.” (In brief, everything looks pretty good and the number of unsold units would be considered as normal. Properties which are not attractive at all would not suddenly become attractive with each passing year. In other words, they would continue to appear under the unsold category for a very long time more to come..  This is the full article again. 

Oversupply seems to be a pretty popular topic these couple of weeks. Today, I delivered a talk in the PIP-EVE.com 2018 Talk Series entitled “Property Market Outlook 2018: Boom or Bust?” When I asked if oversupply will cause the property market to crash, almost everyone in the room nodded their heads! Oh dear. I seriously think we have to start knowing that we are not to believe everything in Facebook or even Whatsapp. Well, first of all, the unsold units which contributed to the overall ‘oversupply’ are NOT going to cause the property market to burst, even if oversupply means a bubble is forming. This was an earlier article: We need more homes actually, then why oversupply?  As for signs to look out for when it comes to the real property bubble, these are those signs: Potential property bubble and signs to look out for  Happy thinking Melaka yeah.

written on 3 Feb 2018

Next suggested article:  8 reasons why buying a property in Melaka is not for you

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