According to the Property Market Report 2021 by the National Property Information Centre (Napic), residential property overhang increased to an all-time high last year of 36,863 units worth RM22.79 billion, marking a 24.7% increase in volume and 20.5% rise in value compared with 2020.

Napic defines “overhang” as residential units that have received certificates of completion and compliance but remain unsold for more than nine months after being launched.

Selangor had the highest number and value of overhang with 6,095 units worth RM5.28 billion. This made up 16.5% in volume and 23.2% in value of the national total.

The state was followed closely by Johor (6,089 units worth RM4.72 billion), Penang (5,493 units, RM3.56 billion) and Kuala Lumpur (3,908 units, RM3.17 billion), respectively.

Condominiums and apartments made up 55.6% (20,505 units) of total overhang, followed by terraced houses (21.3%, 7,839 units).

Properties in the affordable price range of RM300,000 and below formed the majority of unsold houses (31.5%, 11,610 units). This was followed by properties priced from RM500,001 to RM1 million, comprising 30.2% and 11,139 units; and those priced from RM300,001 to RM500,000 with 25.7% and 9,461 units.

Properties priced more than RM1 million made up 12.6% (4,653 units) of residential overhang.

On a positive note, unsold units under construction improved, dropping 2.1% to 70,231 units. However, the supply of unsold properties yet to be constructed recorded a drastic increase of 69.2% to 21,960 units.

Overhang a persistent issue

While Napic’s latest report shows a five-year overview of the market status, previous findings reveal that residential overhang has been prevalent since 2003.

A market boom in the 2010s saw the overhang reduce in tandem with a reduction in supply to 11,316 units, with only 4,956 new completed units added to the existing inventory.

A contributing factor for the overhang is that the saturated market is at the limit of absorptivity, as seen in take-up rates of new launches hovering in the low 30% range since 2016.

In simple terms, the mismatch of demand and supply means there are far too many properties on the market than there are potential buyers.

A common misconception is that residential overhang is caused by a prevalence of overpriced properties catering towards foreign buyers and wealthy Malaysians. Statistics, however, prove otherwise as the bulk of the unsold properties are below the RM300,000 price point classified as “affordable” by the ministry of housing and local government.

The Real Estate and Housing Developers’ Association (Rehda) has previously said the overhang situation could be attributed to developers in many states being forced to build affordable housing alongside their regular units, despite a lack of demand.

This leads to excessive “affordable” properties and increases the cost of ordinary properties to subsidise the construction of these affordable homes.

Source: FreeMalaysiaToday.com

China-based Cainiao Smart Logistics Network Ltd plans to set up a distribution park in Batu Maung, Penang to capitalise on the strategic location and global surge in e-commerce.

The logistics company, an affiliate of Alibaba Group Holding Ltd, today inked a memorandum of understanding (MoU) with the Penang Development Corporation (PDC) to conduct viability and feasibility studies on the development of the planned distribution park including the proposed components.

Chief Minister Chow Kon Yeow said the results of the studies are expected to be out within six months to a year.

“Following the MoU signing, Cainiao has earmarked a piece of land measuring approximately 12.14ha owned by PDC close to the Batu Maung Air Cargo Complex and about 3.1km from the Sultan Abdul Halim Muadzam Shah Bridge, to be studied for the development of a distribution park.

“The distribution park in Penang is planned to encompass a regional e-commerce and logistics hub, serving the e-commerce small and medium enterprises and cater to the demand for warehousing and distribution by air cargo operators,” he told a press conference after witnessing the MoU signing today.

Chow said given the global expansion of the logistics industry, the plan for a distribution park in Penang is timely and relevant.

He said distribution centres provide a single location to stock a large number of products making it a fundamental component of a supply network, and such facilities are in high demand in Penang, which is a prime location for industries and export-oriented businesses.

The MoU was signed by PDC CEO Aziz Bakar and Cainiao KLIA Aeropolis Sdn Bhd CEO Tim Fan.

Fan said Malaysia is a very strategic location for the logistics company and it sees a huge opportunity to grow in this market.

“Our first hub in Malaysia is at the Kuala Lumpur International Airport and we want to grow the business in the northern region with Penang being the second (hub),” he added.

Source: Bernama

The road widening works in Jalan Bukit Minyak Utama from Kota Permai junction to the Jalan Rozhan junction in Bukit Mertajam are expected to be completed by Nov 30, 2023.

Machang Bubuk assemblyman Lee Khai Loon said the road widening works started on Jan 28 this year.

“We are confident that the project will be completed within the given time.

“The works are currently ahead of schedule and are at 3.9%.

“The 1.1km road widening works cost around RM8.49 million and are fully funded by the Penang government.

“The works will include the installation of medians on the road to help control traffic movement and avoid head-on collisions of vehicles.

“It is hoped that when the road widening works are completed, it will help to ease traffic congestion in this area,” Lee told a press conference during a site visit today.

Also present was Seberang Perai City Council (MBSP) councillor Ong Jing Cheng.

Source: Buletin Mutiara

A newly proposed luxury residential development by Galaksi Bebas Sdn. Bhd. in George Town. Strategically located within an upscale neighborhood, on 1.6 acres of land at the intersection of Jalan Cantonment and Jalan Biggs. It is just a stone’s throw away from St. Christopher’s International Primary School, less than 5 minutes drive to Gurney Drive.

This development will see the demolishment of the existing 2-storey bungalow houses, for the construction of a 13-storey luxury condominium. The building will feature 51 luxury residential units and two levels of car parking podiums. Resident facilities and swimming will be located at level 1.

The project is still in its planning stage. More details to be available upon official launch.

Project Name: (to be confirmed)
Location : George Town
Property Type : Serviced residence
Total Units : 51
Built-up Size: (to be confirmed)
Land Tenure : (to be confirmed)
Indicative Price : (to be confirmed)
Developer: Galaksi Bebas Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

The Malaysian Housing Financing Initiative (i-Biaya) is one of four components of the Home Ownership Programme (HOPE) and among the efforts of the Housing and Local Government Ministry (KPKT) to increase home ownership among the people.

KPKT deputy secretary-general (Housing and Community Wellbeing), Datuk Azhar Ahmad said the initiative would focus on the B40 and M40 groups who still faced problems with access to house financing.

“Among the contributing factors to the financing issue are the failure to get housing loans due to poor credit record, the high level of risk and insufficient documents to support the ability to repay the loan.

“It is also a medium that supports the provision of 500,000 affordable homes as targeted in the 12th Malaysia Plan (12MP).”

Azhar said this at the media briefing on i-Biaya which will be launched on April 14 by KPKT Minister, Datuk Seri Reezal Merican Naina Merican and Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz.

There are three schemes to be offered through i-Biaya which are Skim Jaminan Kredit Perumahan (SJKP) via SJKP Berhad, Skim Rumah Pertamaku (SRP) by Cagamas SRP Berhad and Skim Rent-to-Own (RTO) by Perbadanan PR1MA Malaysia (PR1MA).

“The SJKP is to help first-time homebuyers who do not have a fixed income such as gig economy workers, business owners, traders or small entrepreneurs.

“This group usually does not have the usual documents to obtain housing loans such as no salary slips, earning a low income, no EPF contribution and so on,“ said Azhar.

The SRP, on the other hand, helps first-time homebuyers from the M40 and B40 groups to own a house without having to pay the down payment and is open to self-employed individuals or employees whose gross household income does not exceed RM10,000 for single applicants or joint applicants.

Meanwhile, the PR1MA RTO Scheme will open up opportunities for the middle-income group (M40) to own a house through an affordable ownership scheme with a hire purchase concept for all existing PR1MA units throughout Malaysia.

All three schemes can be applied through the 26 banks involved.

Source: Bernama