Alarming… Over 2,000 affordable housing unsold and below RM 300,000 but only 248 applicants.

This is alarming for our property market when more unsold units continue to increases. What is the solutions from our government, when they can have some scheme to help on recover and who is responsible for it...
Alarming 2000 Units unsold property continue to increase

Unsold property below 300k continue to increase and this is not healthy for our property market, what is the solution & did our government having any new measurement for it?

Will you produce your product if there were no demand?

I personally don’t do that if I know the numbers of my customer is limited, is a basic business fundamental. Either you spend money to analyse or you start somethings first and amend it quickly according to needs.

When I am helping my mum for her grandma recipe home cook “ah chaat” (hokkien vege), I give to hawkers merchant who is selling “kuih” , nasi lemak, “tuo pao” , breads & other dry foodstuffs… for FREE. 

In the beginning, they started with 3-5 packages accordingly to their customers and growing new customers too with new dish. This business was really good especially we took back unsold(s) “ah chaat” On the second day without charges and donate it to old folks & orphanages home.

It’s growing fast but failed really fast too when we lack of quality control as we need to get vegetables from different supplier since one supplier is not enough for us. The taste cannot remain with different vegetables and we lose the business. (I was young with motorbike license only, got no skill to guide my mom)

But we only produce our product where demands is out there…

In fact, some of our unsold units in the real estate market are also for similar reasons.  Even at low prices, some are not in the best position. 

Some developers may not have conducted effective research into the existence of requirements. 

Of course, there are people who build units with specifications that buyers don’t think meet their expectations. 

All of this will establish the image in the minds of potential buyers that the quality of these “affordable” housing are “so so”.

Unsold property numbers continue to increase.

Article in edgeprop.my, Minister Zuraida Kamaruddin shared a recent project which is 90% completion of 1,080 units, and total of 2,160 units for the scheme of affordable housing but only managed to attract 248 applicants. 

She said:

“We do not know why the number of applicants is low, considering the fact that this is an area which is experiencing rapid growth and the cost is below RM300,000,”

And added:

That her ministry would give Liziz Standaco the option of continuing with the construction of the remaining units or undertaking changes to convert the units to other types of affordable homes and to offer them for sale to the public. 

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What is the solution & did our government having any new measurement for this?

I think it’s important to keep going and understand demand before creating supply.

Before any official announcement and starting construction, an application for registration should be made as early as possible to assess the level of interest.

Because our current overhang numbers are enough to scare everyone, especially those considering whether to buy a property for the first time.

HBA: To reduce unsold property, stop building non-affordable ones.

National House Buyers Association (HBA) have some sharp comments recently. It said developers must stop classifying affordable homes as homes priced at RM500,000 and below.

HBA secretary-general Chang Kim Loong said, “The situation of unsold properties or ‘overhang’ is only going to get worse if those in the Real Estate and Housing Developers’ Association (Rehda) and other developers continue to build properties which are beyond the income levels of the majority of our people.” Refer to FreeMalaysiaToday.com

He said that current house prices do not match the salaries of consumers who need housing. (In short, either real estate prices are too high or wages are too low)

Unsold property completed rises by 10,000 units. Worry now?

An earlier article by kopiandproperty.com about the state of unsold units in Malaysia Unsold up by another 10,000 units. Worry now?

Chang said home developers need to build more “real” affordable homes with prices ranging from RM150,000 to RM300,000.

He said real estate developers would have to either give “real discounts” or wait until the economy recovers again.

“Home developers should give actual discounts on sales prices, rather than giving them free attorney fees, free stamp duty, free furniture, free two-year maintenance fees, additional parking or cash back guarantees.

For example, Actual sales price minus 20% discount. They also have to make the right product in the right place, at the right price and in the right quantity. “

It’s funny and I disagree

Refer to my earlier post 7 reason should buy property now and not regret later, briefly the property prices only up in long term and who willing to sell cheaper than their cost?

With the similar property specifications, the affordable housing come with bigger size and minimal facilities which is fulfilling for livings, I personally don’t believe developer able to further discount 20% from their sales price.

Even it is discounted for 20%, how could a 500k reduce to 300k and 300k reduce to 150k? Think about it.

Seriously, issues is not affordability for affordable housing…

As I am one of the property consultant who focus on new project selling (under construction), what I discover is our education system is lacking especially in financial education.

Myself, got none financial knowledge from my 18 years old life with “school system”, maybe due to I always sleeping with most of my classes…

But, my SPM only math with B and all other is E and F… I interested with math but not financial?

Because I wants money and I earn money myself from 13 years old by attach to hawkers & wedding dinner.

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