Gerakan alerts Penang to high number of unsold homes

Ooi-Zhi-Yi

GEORGE TOWN: Gerakan has questioned the Penang government for allowing expensive properties to be built when many such units are left unsold.

Penang Gerakan publicity bureau chief Ooi Zhi Yi said official statistics showed 12,000 homes priced between RM100,000 and RM300,000 were left unsold in Penang in the last quarter of last year.

He said based on the National Property Information Centre (Napic) Report on Penang, a majority of them were condominiums.

Napic is a unit under the finance ministry’s Property Services and Valuation Department.

“Considering the number of unsold units priced above RM100,000, why is the Penang government still approving and building projects in this same price category?

“Since properties priced below RM100,000 appear to be in demand, with a lower number of unsold units, would it not be wise for the Penang government to approve projects with such a lower price tag?” Ooi asked at a press conference today.

Ooi said according to Napic’s Quarter 4, 2016 report, 8,119 homes were under construction and not sold, 2,918 homes were approved but not yet constructed, and 1,896 homes were completed but unsold.

img-1

He said the number of unsold units in Penang was 12,933. Only 284 units priced below RM50,000 were unsold while 378 units priced between RM50,000 and RM100,000 were unsold.

img-2

Ooi said according to statistics revealed at the state assembly last November, there were plans to build 2,798 homes at RM42,000; 1,664 homes at RM72,500 and 24,773 homes for between RM198,000 and RM398,000.

The prices for these projects were set by the state government under its “affordable homes” category and are to be adhered by all developers.

“We wonder the basis for their decisions in approving and building properties that do not seem to be in demand.

“We understand the demand and supply data for housing will change from time to time, but the data can be useful in approving future housing projects,” Ooi said.