Recently, we heard about the success of the Home Ownership Campaign (HOC) and how it has helped to push up the number of transactions in the property market. The earlier article here: HOC sold more than targeted numbers I actually consider that as good news. Apparently, some believe the HOC is still not successful enough. The reason is because the number of unsold continue to inch upwards.
In other words, demand is somehow still not faster than the rate of supply coming into the market. Earlier article about the potential demand for 2020 here: Slow, Slow, Slow no grow property market 2020 Of course this is not too hard to see since there continue to be projects which had been completed and the developer sales team was still selling them. Perhaps we look at some numbers then?
Article in themalaysianreserve.com . Official figures from the National Property Information Centre showed unsold homes reached 31,092 units at the end of September last year compared to 30,115 units in the third quarter of 2018 (3Q18). The the value of the unsold residential units dropped to RM18.77 billion for 3Q19 compared to RM19.54 billion in 3Q18.
Johor tops the list for unsold residential units, totalling 5,470 units as well as a total of 12,371 units of serviced apartments in 3Q19. Next in line would be Perak with 5,126 units and Selangor with 4,872 units. Within the residential property category of unsold, condominium and flat accounted for 46.1%, two-and-three-storey terrace is 29.9% and semi-detached and detached houses with 12.8%. It’s good to note that if we compare it on a quarterly basis, the residential overhang declined from a total of 32,810 units valued at RM19.76 billion in 2Q19 to 31,092 units valued at RM18.77 billion in 3Q19. Please do read the comprehensive Article in themalaysianreserve.com
I think a few key things we should take note of. HOC has definitely helped to clear quite a lot of properties which would have remained unsold without it. Demand from the market is still lacklustre because negative news are abound and only the more seasoned property buyers are continuing to view and buy when they see good opportunities. Many first-timers are taking a wait-and-see attitude and some may have been too optimistic and chose a PERFECT property instead of one which is acceptable and well, affordable too. Happy understanding that things are not as bad as what people perceive and if they are, then it’s best to quickly grab the chance of a lifetime…
Next suggested article: Unwanted properties are still unwanted. Market cannot suddenly recover