Stagnation in Malaysia's Unsold Property Dilemma
The Malaysian property market has been witnessing a significant challenge in recent years, particularly with the increasing number of unsold residential properties. As of the latest reports, the total number of completed but unsold residential properties in Malaysia reached approximately 30,000 units in the first quarter of 2024. This figure represents a 10% decline from the previous year, indicating a critical threshold that necessitates attention.
One of the main issues contributing to this surplus of unsold properties is affordability. Many potential homeowners, especially first-time buyers and families from low to middle-income brackets, are struggling to secure financing for homes that are often beyond their financial reach. In fact, with the median house price in Malaysia reported at around RM 400,000, many households find it difficult to meet the required down payments and monthly mortgage commitments.
Moreover, the House Price Index (HPI) has shown an upward trend, increasing by 5% year-on-year. This rise in property prices further exacerbates the affordability crisis, making it challenging for new buyers to enter the market. According to the National Property Information Centre (NAPIC), over 60% of residential properties launched in 2023 were priced above RM 300,000, which is considered a threshold that many low-income families cannot afford.
To address these challenges, stakeholders in the property market, including developers and policymakers, need to consider strategies that enhance affordability. This might include the introduction of more affordable housing schemes, subsidies for first-time buyers, and incentives for developers to create homes within reach for the average Malaysian family.
While the decline in unsold residential properties is a positive sign, the underlying issue of affordability remains a critical challenge. Without effective measures to bridge this gap, many potential homeowners will continue to face barriers in achieving their dream of homeownership.
