If property market is slow, transactions are reduced. This has been the case since 2013. Due to the mismatch in the type and price of properties launched, the number of unsold units have continued to climb. Recent article here: Unsold units are up. Now at 146k There has even been some recent predictions about property bubble bursting for example. Here’s one such prediction by an academician. Just a very short while later however, another media outlet quoted another expert who said property bubble may burst but only after 2019. Here’s that prediction as well. Well, the property market is always about sentiment and whether developers are doing well or not really depends on their product offerings. During a booming period, NEARLY everything can be launched to a good response but currently, perhaps developers are only launching projects selectively. Here’s one looking to launch RM4.2billion worth of GDVs next year.
In an article in Edgeprop.my, property developer Land & General Bhd (L&G) will be launching developments with an estimated GDV of RM4.2 billion next year in the Klang Valley. Its managing director Low Gay Teck said these projects are Aria Rimba at U10, Shah Alam, a serviced apartment project at The Mines Resort in Seri Kembangan and a high-rise residential development in Bandar Sri Damansara. The 120-acre Aria Rimba township development will have residential and commercial offerings. It has a GDV of RM1.1 billion and comprises terraced homes, semi-dees, Rumah Selangorku and commercial developments and will be developed in four to five phases over the next five to six years. There will also be a serviced apartment project in The Mines Resort, which is located close to the South Lake of the resort and will have an estimated GDV of RM1.6 billion. He said, “This leasehold development will have 2,222-unit serviced apartment housed in six blocks. This project is now pending for authority’s approval, we also plan to launch it next year.” Besides these two, there is also another high-rise residential development on Sri Damansara Club’s land in Bandar Sri Damansara, which carries an estimated GDV of RM1.5 billion. It soft launched the Seresta @ Bandar Sri Damansara project recently offering 452-unit of service apartment housed in two 47-stoey towers with built-ups ranging between 1,300sq ft and 1,800sq ft.
I guess this is a sign that some property developers continue to have confidence on the market. There is a huge number of unsold units but I will share this scenario again. Assume we went to view project X last year and we dislike everything about the project, from its location to the connectivity to the design and even the price. This year, the developer RELAUNCHED the project but has changed NOTHING of the things we dislike; exactly the same as last year. Don’t you think this unit will remain UNSOLD? New launches will thus continue to happen while some unsold units will remain unsold forever unless there are some changes to its features. Evaluate all projects objectively based on its own merits instead of what is the number of unsold units. Happy choosing. A video about whether Unsold Units would cause the property market to crash as below.
written on 14 Sept 2018