THE property market is among the pillars of the national economy with government data stating that the sector is on the rise.
According to statistics from the Economy Ministry, the value of construction work done in 2024 reached RM158.8 bil with 4Q 2024 recorded a notable surge of 23.1% (3Q 2024: 22.9%) to RM42.0 bil.
The vibrant performance was primarily driven by buoyant performance of the special trade activities and residential buildings sub-sectors which recorded substantial double-digit increases of 44.9% and 38.9% respectively.
However, a more recent report from BFM News appears to dampen the feel-good factor given that unsold Bumiputera housing units continue to slow progress in the construction sector.
Quoting a REHDA (Real Estate and Housing Developers’ Association Malaysia) source, it was highlighted that the vast majority of these units have been on the market in excess of 36 months.
What is surprising, however, is that the bulk of these unsold homes are in the RM300,001-RM500,000 range which is deemed to be “affordable”.
A significant number of unsold Bumiputera quota homes, particularly those priced between RM300,001-RM500,000, continue to burden the property market, accounting for 77% of the unsold inventory.
Rehda reports that 72% of these units have remained unsold for over 36 months.
— BFM News (@NewsBFM) April 12, 2025
It was further noted that a sharp decline in uptake towards the tail end of 2024 has placed further strain on the housing industry. In fact, the mismatch of demand and supply is placing great burden on developers with the consequence of stifling growth in the housing sector.
According to the report which also quoted NAPIC (National Property Information Centre), the bulk of the stagnant stock comprised of high-rise dwellings.
This news was met with a degree of incredulity with one netizen asking why developers continued to build when such data has been showing a negative trend for the last 10 years.
Some alluded to price tag being prohibitive to Bumiputera buyers despite the properties falling under the affordable category.
Others believed this news was a mere prelude to developers pushing for the unsold units to be released for general sale as opposed to being reserved as Bumiputera lots.
Echoing that sentiment, one netizen argued it was just a ploy to sell at high prices to foreign buyers. In the meantime, locals are priced out from owning their own homes.
Data showing that property market to be healthy was also proffered. It was argued that it was just the Bumiputera units that weren’t appealing to buyers.
Is there a solution to this problem? One that benefits the public and not just an easy way out for developers to sell off excess stock.
Over to you Mr Housing and Local Government Minister … – April 15, 2025
Main image credit: Property Guru Malaysia
