Property Glut Will Eventually Adjust Itself
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The housing and commercial property glut in Kuala Lumpur is not a great cause for concern as the market will eventually adjust itself to accommodate the excessive supply, said the Malaysian Institute of Planners (MIP) president Ihsan Zainal Mokhtar.
"We are not worrying too much for the glut as the developers and the market will always adjust itself. We have adjusted rather well to changes in the past," he told reporters at a press conference.
However, he noted that city plans have to be flexible to adjust to changes in the market.
He cited Melbourne as an example. "Melbourne used to have the issue of office glut in the early 90s. And what Melbourne did was allow these offices to convert into residences, although the concept of staying in the CBD (central business district) wasn't [popular] at that time."
"You cannot just accept things as the way they are. Even the city plan, it has to be able to adjust and flexible enough to change the market forces," he added.