Property Overhang to Remain in 2021

Kuala Lumpur: Overhang properties will be remain high based on income level, locations and prices, according report from Rahim & Co International Sdn Bhd.

Besides that, from their research , the director Sulaiman Saheh referred to Rahim & Co's Property Market review 2020/2021 which showed three states with highest numbers overhang which is Johor, Selangor and Kuala Lumpur. The numbers of properties recorded at 33,000 units, 8,700 units and 7,800units respectively. For the others states such as Perak, Penang also posted higher numbers at around 4,000 units each. 

Sulaiman also mentioned that properties within the city or urban areas would see a strong demand and likely reduce the number of overhang property if the prices were adjusted. 

Based on the report, the ever-growing burden of overhang dwelling units has reached 55,415 units worth RM39.69 billion. 

Earlier Sulaiman on his presentation said that 2020 as a whole, was a year of accelerated readjustment and technology adoption as well as a test on preseverance as people alike faced the odds of a global pandemic scare and precarious economic conditions highlighted by depressing growth rates and raised unemployment. 

Pandemic aside, he said pre-existing problems of unaffordability, over supply and income levels to cost of living remain and need to be solved and tackled effectively and holistically to ensure long-term sustainability of the nation's property market. 


Source: TheStar