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Bandar Malaysia may cause even higher oversupply?

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I do not subscribe to the notion of unsold homes equal to oversupply of homes. The reason is very simple. More than half of all my younger friends do not own a home yet. When asked if they would like to own a home, the answer is a firm, YES. When asked where is the location they like? It’s always a location nearer to the place they work. Where do they work? Most of the time, somewhere within the Kuala Lumpur city centre or the fringes.

This is the reason why I do not see the current unsold unit as a main reason NOT to continue building more appropriate properties for the people. Just look at some recent launches where the offering meets the requirements of the buyers. It’s usually snapped up within a short time frame. It’s applicable whether it’s landed or high-rise units. Key reason is location and price.

Bandar Malaysia is around 6km away from KLCC. In other words, location wise it’s already extremely suitable for many working professionals. As for the new number of people moving into Kuala Lumpur for jobs every year, that’s a few hundred thousands yearly. This meant that demand for homes is not usually increasing by a few thousand units per year. It’s going to be easily tens of thousands every year.

Article in edgeprop.my When Tun Daim Zainuddin was asked about Bandar Malaysia, he said his comments are based on what was written in the newspapers. He said, “I’m worried about the huge overhang. They’ve mentioned it could be over RM20 billion and there have been reports about this. I mean you don’t develop unless you have buyers isn’t it?.”

When asked about the domestic property market next year and if new properties coming in were not good idea. He said, “They’re very concerned now. There are already reports regarding this. What I’m telling you now is what’s been written in the papers. What I say and what I know is from the newspapers.”

The 486-acre Bandar Malaysia is the largest piece of development land in the heart of Kuala Lumpur. It is located at the site of the former Royal Malaysian Air Force base on Jalan Sg Besi. There will be a total of 10,000 affordable housing units within Bandar Malaysia as well based on new terms for the development. Article in edgeprop.my

Let’s be reminded that Tun Daim said this, ‘I mean you do not develop unless you have buyers isn’t it?” This is the most important sentence because whether it’s 10,000 or 5,000 new affordable units, if they are built in some secluded locations for example, then better not build yeah. As for all these units, if they are priced higher just because the location is a premium one, then it’s also possible that the buyers who wanted to buy may not have their loans approved. Let’s wait for more details of these affordable units to be able to make better decisions whether to buy or not to buy. As well as whether the units will most probably become an unsold unit too. Happy following.

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