In­ge­nious ways

The Star Malaysia - StarBiz - - Short Position -

PROP­ERTY de­vel­op­ers in re­cent times are fac­ing trou­ble sell­ing their prop­er­ties that have been launched.

The take-up rates are fall­ing and some are faced with grow­ing in­ven­to­ries of un­sold homes that are dif­fi­cult to sell at ask­ing prices.

The high un­billed sales by a lot of the de­vel­op­ers mean they have some wrig­gle room in hold­ing out but the dif­fer­ent ways they are sell­ing off their in­ven­tory are quite in­ge­nious.

For one, Mah Sing has tapped so­cial me­dia as a means to ex­plore sell­ing homes. It is about the reach they can get to prospec­tive buy­ers. For UEM Sun­rise, it is keep­ing its sales tar­get in­tact but has now teamed up with Hy­att and ven­tur­ing into the hos­pi­tal­ity area as a means to get sales go­ing.

There have been many schemes be­ing hatched by de­vel­op­ers in try­ing to move their stock of prop­erty and Sime Darby Prop­erty Bhd is look­ing at re­view­ing the price it wants to sell prop­er­ties in get­ting sales go­ing.

The novel way of sell­ing and util­is­ing prop­er­ties to gen­er­ate sales shows that de­vel­op­ers are ex­haust­ing all av­enues be­fore con­sid­er­ing low­er­ing prices or sell­ing what the mar­ket wants to get the sec­tor go­ing.

Those mea­sures are good for the econ­omy. Hous­ing is an area that has the big­gest link­ages to the econ­omy and when the sec­tor does well, so does the en­tire econ­omy.

The slump in the hous­ing sec­tor has been on­go­ing for some time and with the econ­omy look­ing softer next year, with earn­ings of Cor­po­rate Malaysia in­di­cat­ing that things are not as rosy as be­fore, get­ting the sec­tor mov­ing is es­sen­tial for the well­be­ing of the econ­omy.

That is why when Ga­muda Bhd sug­gested con­tribut­ing to a fund that takes 2% of rev­enue of de­vel­op­ers to cater for af­ford­able hous­ing, that is some­thing the gov­ern­ment should look at, much like the telecom­mu­ni­ca­tions in­dus­try that gives a slice of rev­enue to­wards build­ing suf­fi­cient in­fra­struc­ture through­out the econ­omy. Only then a way for­ward can be found for an in­dus­try that is find­ing hard to budge from its price.

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