For decades, independent property market analysts have been warning that the built environment is becoming overbuilt, and now over RM33 billion worth of homes across the nation are either stalled in abandoned projects or are unsold.

This is largely due to a mismatch between supply and demand and of this figure, 30,371 units are from abandoned projects by licensed developers and 12,378 units are due to developments by unlicensed companies.

These statistics were revealed in the Abandoned Housing Report by Rehda, and what is of great concern is that some unsold units are in the affordable housing category of RM300,000 and below which is a negative factor.

This is because it indicates that even price-controlled homes are struggling to find buyers and the issue is complicated and compounded by the fact that the cost of construction materials have soared causing developers to raise prices.

The report by Rehda stated that lower mid-range homes, which are typically priced between RM500,000 and RM800,000, have witnessed hikes of up to 20 percent, while homes above RM800,000 have increased by 12 percent.

Another major concern are ‘sick housing’ projects or developments that fail to meet the completion deadline and so far 440 such projects have been identified involving 68,325 housing units all over the country.

-THE MALAYSIA VOICE