3 July 2019: Johor highest property overhang; 1 million affordable homes by 2025

Johor’s property overhang in Q1 at RM36b, highest unsold category in service apartments
Johor has a total of 51,400 units of properties estimated to be worth RM36 billion that were left unsold as at the first quarter of 2019, state Housing, Communications and Multimedia Committee chairman Dzulkefly Ahmad said. He said the overhang included properties that were completed, still under construction as well as those that had yet to be built. “Of the total, service apartments recorded the highest unsold number at 30,127 units estimated to be worth RM21 billion, followed by residential properties at 17,462 units involving a value of over RM10 billion,” he said. Johor Baru was the district with the highest unsold properties. In early May, Johor was reported to have the highest number of unsold completed properties in Malaysia. (Malay Mail)

RM3.15mil fees for foreign property purchases in Penang exempted
Penang Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said that the state government has “lost” RM3.15 million in approval fees that have been waived for foreign property purchases in the state. He said the state government had received 55 applications relating to the waiver of the 3% approval fee between Jan 1 and June 28, 2019. “The RM3.15 million approval fees waived was from a total property transaction of RM105 million, at an average of RM1.91 million per applicant,” he said. The condition for the waiver approval was that the foreigners cannot buy anything less than RM3 million for landed properties and not less than RM1 million for a stratified or high-rise unit on the Penang island, whereas the landed properties and stratified or high-rise properties on the mainland should not be less than RM1 million and RM500,000 respectively. (The Sun Dail)

Govt’s 1 million affordable houses in 10 years target achievable
The government’s aim to build one million units of affordable houses in 10 years is achievable. REHDA vice-president Datuk N K Tong however said the people should give the new government some time. “However, I wouldn’t expect the first 100,000 homes to be delivered within the first year, because from a practical point of view, the gestation period for the development can take up to four years,” he said. He said the government has been engaging with stakeholders, including developers, the house buyers’ association and various government bodies. “If it is well coordinated, it will be achievable,” said Tong. (NST Online)

Exco: Penang to build 110,000 affordable housing units by 2025
State housing, local government, town and country planning committee exco Jagdeep Singh Deo said that Penang will have 110,000 affordable housing units by 2025. He said a total of 30,000 units of affordable housing have been built since 2008. About 25,000 units are now in various stages of construction while the state has approved a further 55,000 units to be built in the state. However, there are still many in the low-income group who could not afford to purchase low-cost housing units or unable to get loan approvals. A solution to this was the state’s rent-to-own schemes. The 2,000 units, located on five districts in the state, were contributed to the state government by developers from the sale of affordable units that were sold to the open market. (Malay Mail)

MAHB ready to proceed with Penang airport expansion
Malaysia Airports Holdings Bhd (MAHB) is ready to proceed with its plan to expand the Penang International Airport after getting the approval from the Finance Ministry. Group chief executive officer Raja Azmi Raja Nazuddin said MAHB has been working on the expansion project over the past two years, and engaging with the Transport Ministry (MoT), Malaysian Aviation Commission (Mavcom) and the Penang state government. MAHB said it is currently in the midst of discussions with various parties on the options for investment and funding models. It added that once the necessary plans have been approved by the Penang Island City Council (MBPP), construction should begin in the first quarter of next year. (The Star Online)

Photo by Sayuti Zainudin/Malay Mail

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