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There's An Oversupply Of Unsold Property Units But Developers Are Still Building More

The same developers are still launching new projects this year.

There's An Oversupply Of Unsold Property Units But Developers Are Still Building More
The property market in Malaysia isn't exactly doing very well at the moment. People are generally not buying new houses and units lately for various reasons.

Well, money is no doubt one of the main causes.

According to a report by The Star, the number of unsold units continues to worsen even though developers have been going all out to promote and sell.

Now, here's the thing. Despite the stagnant market, the same developers still insist on lauching new projects and building more properties!

Data revealed by RHB Research shows that overseas projects may have partially contributed to all the unsold and ongoing projects.

The report also stated some developers' unsold inventory are mostly located in Iskandar Malaysia, citing weak demand and slow release of bumiputra units.

“According to the Real Estate & Housing Developers’ Association’s survey in the first half of 2018, the glut is mainly in the high-end segments such as detached and semi-detached units, as well as the high-rise segment in Johor," RHB Research stated.

As for Greater Klang Valley, the afffected areas are mainly Puchong, Shah Alam and Seremban.

We're still in an oversupply of properties.
Does this mean we may be able to see unsold units up for sale with big discounts and reduced prices? We will have to wait and see.

RHB Research also predicted that most of the properly sales this year would come from more affordable properties.

Furthermore, since the government announced a stamp duty waiver for those who bought residential properties worth below RM500,000 and first-time buyers for homes priced between RM300,000 and RM1mil for the first half of this year, many people have been waiting patiently to make their purchases.

So, will you be buying any property this year?