Oversupply of residential property due to speculation may slow down market
PETALING JAYA: The secondary residential property market could face a slowdown in transactions within the next six to 12 months due to oversupply of properties caused by speculative buyers.
Malaysian Institute of Estate Agents (MIEA) deputy president Siva Shanker said “secondary properties in secondary locations,” namely apartments within the RM150,000 to RM300,000 price range, could be difficult to sell as an oversupply situation has resulted.
“A lot of these properties were sold in the last two to three years and developers made a roaring business out of it. However, they’re now struggling a bit,” he told StarBiz in an interview.
“A lot of people in the past would have bought these properties for speculation,” said Siva.
He said many people bought these properties with the sole intention of selling them immediately once the development was completed.
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