Malaysian Expo To Put Properties Worth RM22.5 Billion On Sale
The Malaysian government is putting some RM22.5 billion worth of real estate on sale in March. This clearance is meant to address the growing number of unsold houses in the country.
Around 180 developers will come forward to offer 22,000 units at the expo, which is scheduled to take place between 1 and 3 March. Housing and Local Government Minister Zuraida Kamaruddin said that a quarter of the properties on offer would be below RM300,000. Additionally, any real estate sold at the expo will be exempted from stamp duty fees.
Malaysia is facing a glut of unsold housing properties for various reasons. One of which is that the average cost of a house was five times the median household income in 2016; the global standard is only three times
There is also a disconnect between market demand and supply. Developers have preferred to spend time on luxury real estate, where locals have been looking for more affordable housing.
This in turn has lead to 29,227 unsold units in the first half of 2018. Representing an increase of 18% over the previous year.
Another 100,000 uncompleted units were also set to reach the market shortly after that time.
Zuraida has said that the government is looking to address this imbalance. Taking time to review the kinds of projects put forward by developers in the future.