KUALA LUMPUR: There are over 27,000 unsold homes, worth RM18.45 billion, as of the final quarter of last year, Dewan Rakyat told.
In a written reply uploaded on the parliament's website, Local Government Development Minister Nga Kor Ming said the large chunk of the unsold homes are worth between RM500,000 to RM1 million each.
"Among the factors that cause a mismatch are due to prices that do not match the buyer's ability based on locality, the type of house that is not in demand and a less strategic location such as being far from the economic center with the absence of suitable public transport," he said.
He was responding to the question raised by Hulu Terengganu member of parliament Datuk Rosol Wahid.
He said that the ministry will be taking necessary steps to resolve the issue, which includes to study and do analysis of property overhang data to identify appropriate solutions, and also urging developers to carry out a Feasibility Study before any development is carried out to ensure that the houses that are built are based on the people's capabilities, thereby preventing the houses from not being sold.
He also said that the government will develop a Housing Data Center (HDC) as a centralized reference source for housing data.
Based on discussion with National Property Information Centre (NAPIC), Real Estate and Housing Developers' Association (REHDA), Khazanah Research Institute (KRI), he said that overhang data needs to be detailed based on price, location, affordability of the locality, type of residence and others so that the solution to this issue can be implemented more practically.
"In the future when the HDC has been developed, the ministry expects this issue to be dealt with more effectively through more accurate and careful planning," he said.