More than 4,000 residential units unsold in Q1 in Penang

Napic report shows 60% are in RM500,000 to RM1mil and above range

GEORGE TOWN: The overhang of Penang residential properties involves mainly those in the higher-end category.

State Housing and Local Government Committee chairman Jagdeep Singh Deo said at a press conference that according to the latest National Property Information Centre (Napic) first quarter 2018 report, the state’s overhang of residential properties were priced from RM500,000 and above.

“The Napic report showed that there were 4,092 unsold residential units. Of this, about 60% or 2,383 were in the non-affordable segment.

“To be exact, there were 1,482 unsold units in the price category of between RM500,000 and RM1mil. There was an overhang of 901 units in the price category of RM1mil and above,” he said.

Jagdeep added that developers were taking their own risk, if they wanted to continue building expensive houses.

“Developing affordable houses is the way of the future,” he added.

In Penang, affordable houses from RM300,000 and below.

Jagdeep’s clarification was in response to a property report “Hope for those planning to own a home” ( StarBizWeek, July 14).

Also present at the press conference were Penang Island City Council mayor Datuk Yew Tung Seang and Raine & Horne Malaysia senior partner Michael Geh. are priced

Jagdeep said that Napic defined properties as “unsold” if they could not be sold nine months after the date of completion.

“This is challengeable as some properties take a longer time to sell,” he added,

On the price of affordable properties, Jagdeep said he would discuss with the housing and finance ministries on the prospects of lowering the ceiling price of affordable properties in the country.

“Finance Minister Lim Guan Eng has said that there would be cheaper houses soon as the sales and service tax (SST) is not applicable to cement, sand and steel.

“For this reason, the pricing of affordable housing in the country should be reviewed, and the ceiling price reduced, if possible,” he said.