Johor comes up with short-term solutions for unsold properties

JOHOR BARU: The state government has come up with a few shortterm measures to reduce the property overhang in Johor, including easing the process to release units reserved for bumiputras.

State Housing, Communications and Multimedia Committee chairman Dzulkefly Ahmad said there were 51,459 units of unsold properties in Johor with an estimated value of more than RM36bil.

He said the short-term solutions would be implemented for a year to see whether it could reduce the stock by at least one-third.

“I recently met with the Real Estate and Housing Developers Association Malaysia Johor branch and told them that the state had created a task force to tackle unsold properties and help developers,” he said.

“However, these incentives still need to be discussed and approved at the executive council meeting,” he told reporters after the Free Market event at Taman University here yesterday.

Dzulkefly pointed out that one of the solutions was to cut the waiting period for the release of bumiputra quota from one year to six months for residential units priced more than RM600,000.

“The second solution is to cut down on the stages of approval from three to two.

“The third is to reduce the minimum floor price for foreigners from RM1mil to RM600,000,” he said.

He added that the state would continue to implement these solutions if it managed to achieve the one-third reduction in overhang.

“RM12bil is a lot, and we can spend it on other forms of development, job opportunities and stimulate the economy,” he said.

On another matter, Dzulkefly said the state government would discuss the possibility of establishing a proper housing area for foreign workers in Johor in order to manage the risk of crime and other negative activities.

“One of the great role models that we can follow is Petronas, where they have placed entertainment centres at their foreign workers’ settlement in Pengerang.

“Of course, there are employers who see the gathering of foreign workers in one place as a bad idea, but we will discuss the matter thoroughly so that we can come up with a solution that is good for everyone,” he said.

Dzulkefly added that a lot of complaints were received in Iskandar Puteri over social issues caused by foreign workers in the area.