The issue of unsold housing units and property overhang in Johor is a long-standing one, which requires intervention if it’s to be resolved.
Even then, he said, it would be challenging as effective demand may have been compromised by the Covid-19 pandemic resulting in reduced interest in investing, financing difficulties and a host of related issues. Cheston International assistant manager David Ng Wei Ming said, at this juncture, nothing much can be done to overcome the problem of unsold units and the property overhang in Johor.
“Out of all the overhang units, some 85% are high-rise condos and small office/home offices. The supply gush, as we called it, for high-rise properties started in 2012 to 2013 during the property boom, and purchasers were mostly investment-oriented.” According to KGV International’s Tan, in the next couple of years, the market will be more local-centric. “Most homebuyers will be buying for personal use with a small proportion for investment. The traditional favourites for the locals are in the Tebrau, Skudai/Tampoi and Iskandar Puteri areas.”