Just Saying ... Unsold Units In Perspective
Just how bad is the issue of unsold units of property in Malaysia. We have about 22,000 units valued at RM22.5bn. Now that averages to a pretty high RM1,022,700. Somewhere the logic does not come through. At the upcoming "fair" about a quarter which will be offered for sale will be below RM300,000. Those at RM1m and above may find very few takers. Those below RM500,000 may see the better interest. All up, it would be hard to see a clearance rate of more than 30%.
Meanwhile, a more sobering figure showed that unsold units for the first half of 2018 stood at 29,227... and that is not accounting for the almost 100,000 uncompleted units coming onto the market. Hence we could be looking at around 60,000 unsold units assuming the upcoming uncompleted units were only 70% sold. That being said, the upcoming "fair" while laudable, is still a step too short from solving the issue. The property market should be in the doldrums for at least another 3-4 years minimum.
To put things in perspective, South China Morning Post already put up a huge warning headline for HK property investors owing to unsold units. They are warning a coming glut of unsold properties there. Their figure, wait for it: 3,295.
It is not apples vs apples but still, HK is already shitting bricks with 3,295 unsold units. Plus they have a much larger base of foreign investors. While our population might be much larger, it is certainly not 20x bigger than HK.