Overhang value exceeded 600% over five years

2-01

OF late, there have been calls from different quarters appealing to the government to reduce the pricing threshold of properties that foreigners are allowed to buy.

The call is a result of a growing number of completed but unsold units in the country.

Over a five-year period between 2014 and the end of 2018, the number of unsold completed residentials grew from 11,816 units to more than 45,000 units by the end of 2018, including serviced apartments and small offices home offices (SoHos).

This translates to a rise of 281% over the period.

In ringgit value, the rise is even greater. The value of residential overhang snowballed by a massive 635%, according to the National Property Information Centre (Napic) records.

The residential overhang was valued at RM4bil at the end of 2014. It grew to RM29.7bil by the end of 2018, Napic records showed.

OF late, there have been calls from different quarters appealing to the government to reduce the pricing threshold of properties that foreigners are allowed to buy.

The call is a result of a growing number of completed but unsold units in the country.

Over a five-year period between 2014 and the end of 2018, the number of unsold completed residentials grew from 11,816 units to more than 45,000 units by the end of 2018, including serviced apartments and small offices home offices (SoHos).

This translates to a rise of 281% over the period.

In ringgit value, the rise is even greater. The value of residential overhang snowballed by a massive 635%, according to the National Property Information Centre (Napic) records.

The residential overhang was valued at RM4bil at the end of 2014. It grew to RM29.7bil by the end of 2018, Napic records showed.

This double increase coincided with the escalation of property prices over a 10-year period starting from 2009/2010. Property prices remain high today.