Glut In Residential Properties Reduced To 17.7 Pct Last Year

18/04/2007 Bernama

KUALA LUMPUR, April 18 (Bernama) -- The overhang rate in the residential property market declined to 17.7 per cent last year compared with 20.4 per cent registered in 2005, Deputy Finance Minister Datuk Dr Ng Yen Yen said Wednesday.

The number of overhang residential properties in the country amounted to 25,645 units worth RM4.18 billion last year, of which 89.4 per cent or 22,936 had been in the market for more than 24 months, she said.

Most of the overhang units were located in Johor (8,215 units) and Selangor (5,233 units), she said at the launch of the National Property Information Centre (NAPIC)'s 2006 Property Market Report here.

Terraced houses and condominium units formed the bulk of the unsold residential properties comprising 39.6 per cent (10,168 units) and 28.8 per cent (7,229 units) of the total respectively.

In terms of prices, 61.2 per cent of these properties were below RM150,000 per unit.

A total of 38,526 new housing units were offered last year but they received a lukewarm response with only 40.6 per cent take-up rate.

The increasing number of overhang properties should be seen as a warning of a saturated market, Ng said.

In order to remain competitive, housing developers should be more innovative by producing quality housing products that meet the rising demand of consumers, she said.

Developers should carry out proper feasibility study or market survey before embarking on any development project, she stressed, adding that this will ensure that the houses are built according to market needs.

-- BERNAMA