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House prices need to be reduced to address overhang: CBRE WTW

16 Jan 2020 / 13:26 H.

KUALA LUMPUR: The Home Ownership Campaign (HOC) 2019 has not helped to significantly reduce the overhang situation in the country, hence house prices should be lowered to effectively clear out unsold stocks, said CBRE | WTW managing director Foo Gee Jen.

“A clear way to reduce the overhang is to reduce the (house) price,“ he said at CBRE | WTW 2020 real estate market outlook briefing here this morning.

As of the first half of 2019, residential property overhang stood at 32,810 unsold houses.

However, Foo pointed out that there was another 20,000 unsold units of serviced apartments and SOHO, which was worrying.

HOC 2019 cleared some RM23.2 billion worth of houses, but Foo said a lot of those were from the sale of new launches.

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