Johor state government to conduct study on faltering housing market

Johor Mentri Besar Datuk Seri  Mohamed Khaled Nordin. — Picture by Choo Choy May
Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin. — Picture by Choo Choy May

JOHOR BAHRU, Nov 18 — The Johor government will be studying the causes and factors contributing to a large number of unsold houses in the state.

Menteri Besar Datuk Seri Mohamed Khaled Nordin said the problem could be initially due to the federal government’s policy in 2015 to limit foreigners to purchase houses priced RM1 million and above.

“Earlier foreigners could purchase houses priced at RM500,000. But when they are completed, the buyers (foreigners) were trapped by the federal government’s policy.

“But we will also take into consideration what Bank Negara said, as we want to find the causes whether it is due to the distribution system, late approval by the government or late approval by banks and so on,” he said.

He was speaking at a media conference after the groundbreaking ceremony for Sekolah Agama Kerajaan Johor (SAKJ) at Sekolah Kebangsaan Taman Bukit Dahlia, Pasir Gudang here today. 

Mohamed Khaled was commenting on a report on Bank Negara’s Quarterly Bulletin in a news portal yesterday which showed Johor had the largest number of unsold residential properties at 27 per cent compared to Selangor (21 per cent), Kuala Lumpur (14 per cent) and Penang (eight per cent).

He said the state government had long frozen the construction of serviced apartment since 2014 after seeing the impact of unsold units.

However, he said, some developers who had the means, persisted in building this type of houses as they could shoulder the burden of their unsold houses. — Bernama

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