IPOH: May 17, 2008 By HAH FOONG LIAN
The Perak government will release unsold bumiputra housing lots for sale in the open market to overcome the problem of "overhang stock" in the state.
As its first step towards the move, the state government has approved the release of 130 units of those lots, valued at some RM5mil, to be sold at the 2008 Malaysia Property Expo (Mapex) launched here on Friday.
Mentri Besar Datuk Seri Mohammad Nizar Jamaluddin said the state government had, in principle, agreed to release unsold bumiputra units for sale in the open market to overcome the problem of oversupply.
Nizar pointed out that the bumiputra units would only be released after the developers had fulfilled the necessary requirements for those lots to be released.
"It would not be healthy for the property sector if the 'overhang stock' were to remain in the market for too long," he said when opening the 2008 Mapex held at Stadium Indera Mulia.
One way of reducing the problem of oversupply is to allow developers to sell units that are initially allocated for bumiputras, Nizar added.
He pointed out that the move would be able to help generate additional capital to develop property at other places where bumiputras could be more interested in a purchase.
Generally, developers have to allocate 30% of the number of housing units built to be sold to bumiputras.
“Overhang property” in the housing sector last year stood at 1,379 units with a value of RM148.6mil, he said.
Nizar also noted that the state government would plan a suitable approach to bring about a balanced development in Perak.
Citing statistics from the 2007 property market report, he said, a total of 6,821 units of new housing schemes had been launched.
However, some 65% of the development was in the Kinta district while the remaining was spread out in seven districts in the state, he said.
A total of 19 developers took part in the property fair to showcase 3,701 units of mixed housing development valued at some RM1.141bil.