Malaysia Property Search, Real Estate Sale & New Project Launch

1. Let the property market adjust itself, economist says on price threshold KUALA LUMPUR: A prominent economist has suggested that the government allow the market to adjust on its own instead of intervening in the property overhang by lowering the price threshold for foreigners to buy houses. Speaking to reporters after a forum at Universiti Malaya here yesterday, Muhammed Abdul Khalid acknowledged the need to reduce the property overhang in the country but said a mismatch remains between supply and demand. He said developers build too many high-end houses, adding that the reduction in threshold from RM1 million to RM600,000 would only clear unsold homes for the “well-to-do”. When questioned, he said it “felt, looked, and smelled” like a bailout for developers. “It’s better to allow the market to adjust itself, which means the only rational thing is for developers to lower their prices to make (unsold units) affordable for Malaysians. “When you can’t sell at the current price, the rational thing to do is to reduce the price,” he said. Khalid, who is Prime Minister Dr Mahathir Mohamad’s economic adviser, said the government should only intervene in the property market to build more affordable homes for the lower- and middle-income group.

2. Real Estate and Housing Developers Association president Soam Heng Choon recently defended the government’s decision, saying it would help developers release unsold houses and reinvest in affordable housing. His comments came as consumer groups voiced concern over the move, fearing it would lead to an increase in property prices and the construction of homes which foreigners could afford but not locals.