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PEPS: Govt should buy overhang units and turn them to affordable housing

KUALA LUMPUR (Oct 13): The Government should consider purchasing and repurposing the overhang properties in matured areas and turn them into affordable housing to address two issues at one go, said the president of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia (PEPS), Michael Kong (pictured).

“While the government is actively pursuing the issue [of overhang properties and affordable housing], private developers are reluctant to build affordable housing due to thin margins. It is time to think out of the box. 

"We need to assess the demand of affordable housing and match it with the existing supply, not the future incoming supply, to avoid creating more overhang houses,” he said during the opening remarks for the 14th Malaysian Property Summit 2021 (14MPS) which was held virtually today. 

EdgeProp Malaysia is the media partner of the event themed “Eye on 2022”.

Kong noted that the government should consider purchasing the unoccupied units in mature areas, remodel, repurpose and rebrand them to affordable housing for sale.

“With this we can free developers from the obligation and unlock the value of these retarded units,” he stated.

On the property market, Kong said 2020/2021 is a lost year due to the disruptions caused by the  Covid-19 pandemic, where the property market and Malaysia’s economy were in a standstill condition.

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