NAPIC Urged to Provide More Up-to-Date Data
Data coming from the National Property Information Centre (NAPIC) should be more up-to-date so that buyers can understand the current demand and supply situation and make purchasing decisions.
See Kok Loong, executive director of Metro Homes Realty Bhd, said the data provided by some parties like NAPIC only present property overhang and not the overall market supply.
NAPIC had in January published the Property Stock and Status Q3 (third quarter) 2018 data which showed that the number of unsold houses in Malaysia had reached a new high of 30,115 worthRM19.54 billion, a year-on-year increase of 9,811 units, or RM18.28 billion, from 20,304 in Q3 2017. The Q3 2017 figure was 6,111 more than the 14,193 unsold units in Q3 2016.
These figures represented houses that remained unsold nine months after they secured the certificate of completion and compliance (CCC). They exclude residential properties built on commercial land like serviced apartments and small-office home-offices (SoHo).
A property consulting firm reported in February that at end-September 2018, Malaysia’s property overhang stood at 43,219 units worth RM29.47 billion. This time serviced apartments and SoHo units were included.
See said all the above only represents property overhang and not the overall market supply.
“The figures provided only covers developer’s stock... it does not cover units already sold to individuals or companies,” said See.
He said the real ratio that represents a supply and demand situation should be the residential vacancy rate (RVR).
RVR is the percentage of all units in a specific market that are unoccupied during a particular time.
Vacancy rate is calculated by multiplying the number of vacant units in a building by 100 and then dividing that by the total number of units that are available in that block.
“Unfortunately, we don’t use the RVR in Malaysia. I believe it is time for NAPIC to provide the information based on RVR, instead of just overhang numbers.”
See, who is also deputy-president of Malaysia Institute of Professional Estate Agents and Consultants, said Napic should provide RVR by national, state, city or location basis similar to other developed countries such as the United States, Singapore and Australia.
“I believe this will help developers, banks, property consultants, house buyers and investors make a decision by understanding the current demand and supply situation. For example, RVR above seven per cent is considered high and it is alarming for the market to add on supply,” he said.
See said low vacancy rates generally mean that the real estate market performance of an area is good.
It is an indication that strong demand for rental real estate units exists.
“Once we have a series of data over several years, we will able to analyse the market situation better in terms of demand and supply.
“NAPIC should compile and publish it on a quarterly basis for the public to analyse. For a better Malaysia, we should start providing more information on timely basis so that the stakeholders can react accordingly,” he added.