OPTIMISM DESPITE SOFTENING MARKET
Johor housing developers hopeful state govt’s initiative will spur demand for property
HOUSING developers in Johor are maintaining a positive attitude despite the gloom affecting the state’s property market. Bank Negara Malaysia’s quarterly bulletin last week stated that the number of unsold residential properties in Malaysia is at a decade-high, with a majority of units being in the RM250,000 and above price category — beyond the income of most Malaysians.
The report said Johor had the largest share of unsold residential units with 27 per cent.
UEM Sunrise Bhd managing director and chief executive officer Anwar Syahrin Abdul Ajib admitted that housing developers were facing challenges due to the imbalance in housing demand and supply.
He said developers would be extra cautious over their expenditure on future housing projects nationwide, including in Johor.
“But, with the state government’s initiative to spur growth in home ownership among Johoreans, developers are hopeful that take-up demand for unsold units will rise next year.”
Echoing a similar sentiment, Sunway Iskandar chairman Tan Sri Dr Jeffrey Cheah said property developers were facing headwinds in the housing industry.
“All of us are facing challenges and headwinds, but I think the government is being proactive, and looking at unsold units and how it can help developers.
“At one point, every developer was eager to complete their developments, thinking that the market will be good, but, in fact, there are still imbalances in the housing market demand, which created this headwind.”
However, he noted that with the right policy and incentives, the imbalances could be corrected.
Anwar and Cheah were speaking at the launch of the new Coastal Highway Southern Link yesterday, which was officiated by Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin.
The 5.2-km toll-free highway will connect the Iskandar Coastal Highway to the Second Link Expressway. It will be opened to motorists from today.
It will cut travel time from the Sultan Iskandar Customs, Immigration and Quarantine Complex to Medini City, from 10 to five minutes.