Property glut must be reset
Lee Heng Guie | 01 Dec 2017 00:30
The government has frozen approvals for luxury property developments whose units are priced at RM1 mil and above

Despite a multi-year consolidation amid moderating prices, the property sector must go through a reset as it rebalances from oversupplying the consumer and investor market. An intervention policy is urgently needed to help unwind the imbalances in an orderly fashion.

Bank Negara Malaysia (BNM) is commended for its resolute efforts to raise the red flag on the worsening imbalances in the property market. We believe BNM has exhausted all its avenues to compel the government and relevant agencies to act now before the imbalances get from bad to worse.

As the central bank repeatedly reminds the authorities, there is much at stake as regards the present and future oversupply in the property sector. The wider economy and banking system’s stability would be challenged for reasons that no responsible policymaker can afford to disregard.