KUALA LUMPUR: Reducing property prices is the only way to clear the overhang units in the country, says CBRE-WTW managing director Foo Gee Jen.
As at end-2019, he said, the number of overhang residential properties stood at about 35,000 units, while for serviced apartment/Soho/ Sovo commercial property it was about 20,000 units.
“In the Klang Valley, if there is no major correction of prices in serviced apartment/Soho/Sovo, it would take the next five years to clear.
“For residential units, there is still hope for the prices to go up as the properties could hedge against inflation from the long-term perspective,” he said, adding that this segment would probably take two years to clear.
Foo was giving a media briefing on the real estate outlook 2020 here today. – Jan 16, 2020, Bernama
