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| 230,000 property units estimated sold in 2002 [ 10/2/2003 ] |
PROPERTY transactions last year are estimated to involve 230,000 units worth
RM38 billion, says Property & Valuation Services Department deputy
director-general Datuk Mani Usilappan.
This volume is below the peak
achieved in 1997 when 275,378 units worth RM53.1 billion were sold.
In
his paper, Property Market: Future Prospects, presented at the Malaysian Annual
Real Estate Convention 2003 last Saturday, Mani said the property market is
currently experiencing an oversupply.
He said that while the scenario
indicates weak prospects for the sector, there are still opportunities to be
exploited.
According to Mani, 42.2 per cent of the overhang has existed
for more than 24 months and is probably property that cannot be sold
anyway.
He believes that the bulk of unsold houses - town houses,
double-storey semi-detached and single-storey detached houses - will be sold
eventually and there is no need for any special incentives to get rid of the
overhang.
“In fact, it was observed that more houses are being launched
to take advantage of the incentive (no stamp duty), thus worsening the
situation,” he said.
He also noted that the price of an average
residential property has gone up compared to 2001.
One of the suggestions
made to address the overhang is for the local authorities to only approve viable
projects. This can be done though feasibility reports, Mani said.
Banks
and financial institutions loanedmore than RM186.5 billion to the broad property
sector, and more than 34 per cent of all non-performing loans is from this
sector.
Mani urged the lending institutions to obtain feasibility studies
before approving funding.
Other issues raised include the need to
allocate more funds for property research. “There is a need to set up a national
body to supervise and coordinate research in property.”
To date, the
Government has allocated RM2.5 million to the National Institute of Valuation to
set up a coordinating body for research.
Mani also addressed the acute
shortage of valuers, architects, planners, engineers and professional land
administration personnel in the relevant government agencies to carry out
development-related work.
“If all the players in the industry are
professional in their approach, use professionals and adhere to the demands of
the market, the current ills can be averted in the future,” he said.
Source : NST 10/2/2003 |
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