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31,415 residential units sold! Already 36% higher than targeted (as at end Nov).

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This is positive news. I repeat, this is positive news. So, I think this article will not be a popular one. Haha. Funny right. Even readers of kopiandproperty.com are selective. When the article has a negative title and it tells of a negative situation, that article will be popular. There will even be more sharing in Facebook than usual. It’s okay, as someone owning properties in Malaysia, I will write both the good and the bad and will be writing daily too.

Remember the famous Home Ownership Campaign (HOC)? The one which made the government ‘lose’ money? The buyers need not pay the stamp duty mah… The goal was to reduce the unsold units or more specifically, focused on the overhang units; unsold units after handover of 9 months. It was extended till 31st December 2019 because of good response and perhaps many buyers were in the process of buying one when the deadline arrived.

Article in themalaysianreserve.com Housing and Local Government Minister Zuraida Kamaruddin said that the HOC programme has cleared 31,415 residential units developed by federal and state governments, and private builders. She said, “This is above our target. The private developers are very satisfied with HOC because it helped and encouraged them to ease their overhang units. They said they can offer their own discounts for buyers without HOC after this, so they can further minimise their losses.”

The HOC has sold some RM23.9 billion worth of houses and this was above the initial target of RM17 billion. This RM23.9 billion is only as at November 2019. It meant that the actual number at the end of December 2019 will be higher. The HOC was designed to reduce the overhang in the property market valued at RM20 billion. Zuraida shared that there are no plans to extend the HOC for 2020. However if the overhang is still high, her ministry could run other incentive programmes.

The data also showed that houses priced between RM300,000 and RM599,999 recorded the most take-up, with 17,217 units (54.8%) transacted, followed by houses that were priced between RM600,000 and RM999,999, with 10,970 units (34.92%) sold. For a comprehensive report, do refer to the Article in themalaysianreserve.com

You heard it from the minister herself. There’s not going to be extension for the HOC but if the overhang remained high (or continue to go up…), there will be fresh initiatives to reduce them. Just remember that the focus is not on unsold units yeah. The focus is only on overhang units which briefly meant completed units which has remained unsold for 9 months. It’s also not correct to attribute the unsold units to just pricing yeah.

The reasons for being unsold could range from pricing to location and even to marketing activities; lacking of effective ones. Have you been to some sales galleries where the sales people could not answer any of your questions about the property market or even their nearby competing developers but could also keep talking about the features? Dear sales people, if I needed to know about the features, I could get it online… Happy selling.

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Next suggested article: Bank Negara,could you lower lending requirements for first-timers?

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