Never stop your decision to buy if you have found a good property. There are not that many lying around waiting for you. That’s the reason why unsold units remain unsold. Remember, when the prices are just too high versus the quality or the location, after one year it will still be expensive. These days, developers handing over the keys and still continue selling is quite common. There are now ‘buy and move in packages’ available where the home is renovated sufficiently for buyers to just buy and move in with very minimal renovations. Air-con units are very often offered in the mix too because this usually takes times and lots of cleaning up after the installation. Are the units moving faster? Well, when we look at the total unsold units, this is not the case. An article about the rise in unsold units in TheMalaysianReserve here.
As at Q1 2017, the total unsold units in Malaysia was highest in a decade at over 130k units. Well, latest number as at Q2 2017 showed that the number is still increasing. As per Bank Negara Malaysia (BNM), the level of total unsold residential properties in Malaysia stood at a decade-high of 146,497 units as at the second quarter (2Q) of 2017. This is an increase of 16k from a quarter earlier. BNM also shared that 82 percent of all unsoldunits in Q2 2017 were priced above RM250,000. This is a critical issue because BNM estimated the maximum affordable house price in the country to be RM282,000 based on the housing cost burden approach. In brief, there are lots of new homes being built but the prices were not affordable enough for the masses. (Hopefully the current slowdown would push prices down with a different approach from developers and in the mean time, the income growth can catch up with the property price)
BNM also shared this about home loans. It said that financing continued to be available for purchases of houses for eligible borrowers, with more than 70 per cent of housing loans accorded to first-time buyers and close to two-thirds of new housing loans channelled to the purchase of houses costing below RM500,000. The central bank also outlined five strategies to overcome the issue, including centralising affordable housing initiatives and setting up an integrated housing database and an applicant registry for planning and allocating affordable housing. An earlier policy options from BNM. Bank Negara’s 6 policy options. I like them all The three major reasons for this unsold units include: mismatch between supply and demand for housing, new launches skewed towards the unaffordable range, and growth in house prices outpacing that of household income. BNM said, “Since 2012, new housing supply has consistently fallen short of the increase in demand by households.” Full article in TheMalaysMail here.
Happy following the news but don’t stop viewing yeah. Opportunities come but are usually grabbed by the most prepared few and not the rest. Cheers.
written on 21 Feb 2018
Next suggested article: Ready, Steady, Grab the opportunity (KLCC area)