Desperate developers slash prices as property glut worsens


Nabihah Hamid

As of September this year, the number of completed and unsold residential units totalled 30,115 – an increase of 48.35% from the 20,304 units last year. – The Malaysian Insight file pic, December 31, 2018.

PROPERTY developers eager to recoup their capital and offset losses are now slashing the price of unsold homes, as recent data showed a worsening of the property glut in Malaysia.

Radzi Tajuddin, chief executive officer of Hartabumi, a real estate portal for Bumiputera lots in the Klang Valley, said instead of waiting for the situation and economy to improve, developers are taking proactive steps to reduce the prices of unsold units.


Effective July 2018, access to full reports will only be available with a subscription. Sign-up now and enjoy one (1) week free access!

Subscribe Now!


Sign up or sign in here to comment.


Comments


  • For any new projects, priority should be given to those first time house buyers who intend to stay in the unit they're buying. Next would be those who want to upgrade or change house. Those who buys it as a business with intention to resell it later with higher price should be the absolute last! Also, make it compulsory that the developer must have the necessary funds to complete at least 80% of the total number of units for the project in order for it to be approved.

    Posted 5 years ago by Your Grandpa

  • Why did the previous gomen approve so many projects especially when the economy was slowing down? It is time to get rid of bumiputra allocations to eliminate artificial pricing which skew and distort the values of our properties. Market value should be determined by the market.

    Posted 5 years ago by Roger 5201

  • Ants are a lot smarter than humans, it appears. Or maybe they succeed because they have no choice. Humans have the dubious advantage of choosing to look at reality down the wrong end of the telescope, believing that getting rich is everything.

    Posted 5 years ago by Antares Maitreya