Ageing Population Spurred Property Overhang Say Experts

---

 
According to the National Property Information Centre, there were a total of 27,746 overhang units worth RM18.41 billion in 2022.PETALING JAYA: Demand for housing will soften as Malaysia grapples with an ageing population and a sluggish fertility rate, say experts.
Xiamen University Malaysia senior economics lecturer Consilz Tan said regions such as Johor, Penang, and Selangor are still recording overhang values.
“This is contributed by the mismatch of location, price, and types of houses,” Tan told FMT.
She said people have focused too much on home ownership instead of rented homes, which in turn creates a higher household debt trap, leading to a retirement crisis.
“One should not rush into housing debt merely to fulfil the desire of owning a house without proper financial planning and fund allocation,” she said.
“There is nearly RM1.4 trillion worth of household debt in Malaysia, with 58% of this being housing loans.”
According to the National Property Information Centre, there were a total of 27,746 overhang units worth RM18.41 billion in 2022.
Johor retained the highest number and overhang value in the country with 5,285 units worth RM4.33 billion, accounting for 19.0% and 23.5% of the national volume and value respectively.
Selangor (3,698 units worth RM3.36 billion), Penang (3,593 units worth RM2.74 billion) and Kuala Lumpur (3,429 units worth RM3.15 billion) followed suit.
Sidsapesan Sittampalam, managing director of a real estate company, said changing trends, such as fewer young people getting married, and couples having fewer children, are shaking up housing preferences.
“Though we have enough homes for now, older folk wanting smaller, accessible places for healthcare are causing a shift. It’s not just a housing issue, it’s affecting jobs and different industries too,” said Sittampalam.
He called for improved government infrastructure planning and policies such as tax rebates to encourage larger family units.
“The government should encourage young couples to have more kids through policy intervention in the form of tax rebates,” he said.
Release Bumiputera lots
National House Buyers Association secretary-general Chang Kim Loong said unreleased Bumiputera lots contribute to about 40% to 50% of overhang numbers.
“The release of unsold Bumiputera lots is under the control of the state government and is dependent on political decisions. If a release mechanism is not permitted, it will likely result in increased prices for subsequent launches,” said Chang. - FMT

---