According to a report released by The Star on the 5th May 2019, Johor is home to the state with the most unsold homes in the whole nation. We wish to validate and ask “How true is this report?” and if so, what are the root causes and solutions to this impending issue?
Data and statistics reveal that Johor has held the title for most number of completed and unsold properties for two consecutive years – with a record breaking amount of 6,066 unsold units. This claim is supported by a statement by Housing and Rural Development Committee chairman, Dzulkefly Ahmad.
“The total unsold units amount to approximately RM4,068 billion and almost 60% cost more than RM500,000.”
This unreasonable situation comes as no surprise and explains why the majority of those in the B40 (Bottom 40 income bracket) opt to rent their homes instead.
Credit : Malaysiakini
Despite the media and leading property experts preaching the myth that home prices will plummet, that vision remains a dream for now.
What’s more shocking is that 2019 is known as the “Best Auction Year” where stockpiles of homes and residences will be auctioned off by the banks due to homeowners lack of capacity to service their loan installments.
Credit : Rumah Lelong Panas
Statistics state that at least 3,000 home units within Malaysia will be auctioned and huge portion will be focused on areas with access to an MRT, LRT or TOD (Transit Oriented Development).
Developers on the other hand, will be focusing on promoting houses priced RM500,000 with monthly installments of RM2,500 – RM3,000 per month.
One of the more proactive and effective home ownership effort for Johorians is the Affordable Housing Policy (Rumah Mampu Milik Johor (RMMJ).
Credit : Utusan
However, the policy has received massive criticism claiming that the opportunity was insufficiently promoted throughout the state and that there were reduced quotas for Bumiputera recipients.
The government needs to take more comprehensive steps to address the issue of unsold houses in Johor in order to achieve a holistic solution to home ownership for Bumiputeras in Johor.