Daim tepid on Bandar Malaysia, points to property glut
Former finance minister Daim Zainuddin today expressed caution over the revived Bandar Malaysia project, pointing to a reported oversupply of properties in the market.
Met by reporters after a function in Kuala Lumpur, Daim said: "My worry is the huge overhang. Property overhang."
"They (the government) have to handle it... If there are buyers, okay, good...
Former finance minister Daim Zainuddin today expressed caution over the revived Bandar Malaysia project, pointing to a reported oversupply of properties in the market.
Met by reporters after a function in Kuala Lumpur, Daim said: "My worry is the huge overhang. Property overhang."
"They (the government) have to handle it... If there are buyers, okay, good," said the former Council of Eminent Persons head.
On his outlook on Malaysia's property market, Daim again referred to reports that highlighted a glut of unsold properties.
" I don't need to describe, they (the media) have been telling us... (There is a) huge overhang," he said.
Pressed further, Daim cited an approximate figure of RM20 billion worth of property overhang.
He earlier delivered a keynote speech titled "The Future of Malaysia: Building a Sustainable Ecosystem for All" at a function hosted by the Malaysian Institute of Management.
According to the National Property Information Centre, as of June this year, there were 32,810 units of unsold properties valued at RM19.76 billion.
From the figure, condominium and apartment units made up the highest percentage at 43 percent or 14,021 unsold units, while the highest price overhang range was for units priced between RM200,000 and RM300,000.
Prime Minister Dr Mahathir Mohamad had in April announced that development of the former air force base in Sungai Besi into Bandar Malaysia would be reinstated but with several changes.
Among these changes is the requirement for 10,000 units of affordable homes to be built, up from 5,000 under the initial plan.
Quizzed on whether the increased requirement would worsen the existing glut, Daim said: "Unless they can get buyers... You don't develop unless there are buyers isn't it?"
Putrajaya has retained IWH-CREC Sdn Bhd as the master developer, with the formal agreement signing ceremony held yesterday.
IWH-CREC is a consortium between Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd (CREC).
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