IPOH: The overhang property situation in Perak is not alarming, as the majority of these properties are priced at RM300,000 and below.
Property overhang refers to properties that remain unsold nine months after their launch.
Perak Real Estate and Housing Developers' Association of Malaysia (Rehda) chairman Loh Ban Ho said most of the property overhang is below RM300,000, and there is no concern over this figure because it can be easily absorbed by the market.
"The overhang property exists in Perak, and we have about 4,000 overhang properties for the first quarter of this year. In the second half of this year, the overhang has slightly reduced.
"The majority of overhang properties are concentrated in three areas - Manjung, Teluk Intan, and Kinta."
Loh was speaking at a press conference on the Perak Malaysia Property Exposition (Mapex) at the Rehda office today. Mapex will be held from Oct 4-6 at Ipoh Parade, featuring about 5,000 properties for sale.
He was commenting on the National Property Information Centre's (Napic) Property Market 1H2024 Report, where Perak had the most number of unsold properties amounting to 4,161 units.
https://www.nst.com.my/amp/property/2024/09/1103643/malaysias-property-m...
Loh added that the situation would be more alarming if there were overhang properties priced between RM500,000 and RM600,000, which the public could not afford.
"We don't foresee a major problem in our property market, and through this exposition, we are promoting many products priced below RM300,000.
"We believe the public will benefit from this exposition to purchase property,."
When asked for an update on the task force addressing the overhang properties in Perak, Loh noted that further studies showed that most unsold properties are all priced below RM300,000.
"That is why we are not alarmed by the figure. We know we can resolve it because these properties are in an affordable range, and it's not a concerning figure.
"I think what is happening currently is that the public is facing significant pressure in obtaining bank loans, making it difficult to secure financing. This is why there is a high rate of rejection from the banks," he said.
Loh added that Rehda, along with the Perak Housing and Property Board, has also observed that the overhang properties, particularly high-rise buildings, are priced between RM500,000 and RM600,000.
"We have studied this situation and discussed it with the state government. We are trying to appeal to the government to lower this threshold to align with the Malaysia My Second Home (MM2H) programme figures.
"If we can achieve that, we will be able to sell these unsold high-rise properties to foreigners as well.
"This is the approach we are discussing with the state government to find a solution," he said.
Loh said that property in Ipoh is very affordable compared to Penang and Kuala Lumpur.
"In Penang and Kuala Lumpur, landed properties cost a million and above, while we are below RM500,000.
"Our properties are still very affordable and attractive, so we should communicate this to the public. Even investors from outside Perak are coming to invest in Ipoh because our properties remain very affordable," he said.