Over 4,000 unsold properties in Perak 'not alarming', says Rehda

IPOH: The over 4,000 unsold or overhang properties in Perak are not alarming as the majority are priced at RM300,000 and below, says the state’s Real Estate and Housing Developers’ Association of Malaysia (Rehda).

Perak Rehda chairman Loh Ban Ho said that properties in this price range could be easily absorbed by the public.

Compared to the figures of unsold properties in the first quarter of the year, overhang properties have reduced slightly in the second quarter.

“According to a report by the National Property Information Centre (Napic), in the first quarter there were 4,588 overhang properties in Perak compared to 4,161 in the second quarter.

“There is a slight reduction, and most of these unsold properties are concentrated in Manjung, Teluk Intan and the Kinta districts.

“But it is fortunate that these properties are RM300,000 and below, as such properties can be easily absorbed by the public,” he said at a press conference on Friday (Sept 20) to announce the Malaysia Property Exhibition (Mapex 2024) to be held next month.

Loh was asked to comment on Napic’s report indicating that Perak had the highest number of unsold properties at 4,161 units, followed by Johor (3,219 units), Kuala Lumpur (3,051 units), Penang (2,400 units) and Selangor (2,328 units).

He said the situation would be alarming if the 4,000 overhang properties were priced between RM500,000 and RM600,000, making it difficult for the public to purchase such properties.

“If that were the case, it would be a problem. We do not foresee a big issue in our property market.

“During the Expo, we will market many properties priced at RM300,000 and below, as we believe the public will buy them up,” he added.

A task force led by the state Housing and Property Board, which includes Rehda, has been set up to address the overhang properties in Manjung, Teluk Intan and Kinta.

The committee’s study found that overhang properties in these areas were all below RM300,000.

“So we are not alarmed by the figure, as we know we can solve the matter with properties within the affordable range.

“We need time for people to buy these properties, as many are currently facing difficulties obtaining bank loans.

“It is not easy to get a bank loan, and there are many rejections. Hopefully, in time, people who wish to buy properties below RM300,000 will be able to secure one,” he added.

Loh noted that overhang properties, particularly high-rise buildings, are priced between RM500,000 and RM600,000.

“We have studied this situation and discussed it with the state government, and we are trying to appeal to the government to lower this threshold to match the Malaysia My Second Home (MM2H) programme figures.

“If we can achieve that, we will be able to sell these unsold high-rise properties to foreigners as well.

“This is the step we are discussing with the state government to find a solution,” he said, adding that properties in Perak are still affordable compared to Penang or Kuala Lumpur.

Loh urged people, including investors outside of Perak, to invest in the state, as properties here are still very affordable.