THE SUN DAILY. 13TH OCTOBER: ‘Govt should discourage speculative buying to reduce number of unoccupied residential units’.
In recent years, an alarming trend has emerged in the housing market, with a significant increase in the number of unoccupied residential units.
In June last year, Statistics Department Director-General Datuk Seri Mohd Uzir Mahidin said 1.9 million houses out of 9.6 million that were purchased nationwide from 2010 to 2020 continued to be unoccupied in 2022.
He said the data, which was collected as part of the 2020 Malaysia Census, also showed there was an increase of 700,000 unoccupied houses in the country between 2010 and 2020.
“The statistics showed 18% of the houses purchased in Pahang were unoccupied while 30% were unoccupied in Malacca.
“Factors that contributed to this state of affairs include housebuyers treating their houses as weekend homes. Others were turned into homestays as the owners worked out of town,” he said.
Investors, landlords and housing agents have expressed concern over the issue, as they are grappling with the consequences.
Property sales adviser Nur Fazlin Shakina Afendi said the growing number of unoccupied residential units could also be attributed to other factors.
“I see the main cause of unoccupied houses as a result of speculative buying by investors. Some of them just purchase properties without carrying out a proper study or survey and often leave them vacant.
“This trend has not only resulted in a waste of precious housing resources but also driven up prices, making it even harder for first-time homebuyers to enter the market.”
Nur Fazlin said the situation further
worsens the already severe housing shortage in many parts of the country.
She said stakeholders should find sustainable solutions that will promote a balanced and inclusive housing market for the benefit of the community.
“Policymakers and local governments should make firm decisions on housing policies to correct this situation and discourage speculative buying,” she said.
A 43-year-old Penangite who owns a property in Masai, Johor, and wishes to be known only as Natalie, said she too feels the effects of the growing number of unoccupied houses.
“The issue should not be ignored. I bought my second house in Johor six years ago as an investment. The units were affordable, which made some of the buyers book more than one in the hope of selling them for a profit.”
Natalie said she assumed her investment would provide her with a good return. However, she said the demand for her house or even using it as a homestay turned out to be low due to its non-strategic location.
She said the Covid-19 pandemic made it harder for landlords like her to find suitable tenants, and that also impacted her.
“Covid-19 affected me. It doubled the cost of internal and external renovations, regular cleaning, maintenance and inspections, which ensure my house is safe and in good order,” she said.
Veteran property investor Lee Zhu Kuan said: “Leaving properties empty is detrimental to the neighbours and the investor. Unoccupied units generate no income but incur costs for maintenance, property taxes and insurance.
“Instead of leaving properties empty, it is better to rent them to any organisations or companies that want to turn them into staff hostels, for instance.
“Landlords and investors should remember that it is not always about the money. One must invest responsibly, so property owners should consider alternatives such as renting out their units or engaging in community initiatives to provide affordable housing.
“By actively contributing to the rental market or participating in affordable housing programmes, investors can make a positive impact while still ensuring their financial goals are met,” he said.