Ong: Only 43,353 units unsold
18/07/2003 The Star BY FOONG PEK YEE

KUALA LUMPUR: There are only 43,353 units of unsold residential property in the market based on the Government’s new definition of such units or 28% fewer than the 59,750 reported.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said overhang or unsold property, to be officially defined as “in-coming supply” soon, would be divided into two categories – completed units awaiting certificates of fitness for occupation (CFO) and units under construction.

Of the 59,750 unsold units as of last December, only 6,715 were already completed and awaiting CFO while another 36,638 were under construction, Ong said

He said his ministry, the Finance Ministry and professionals had agreed on the new definition which was more representative of the situation on the ground.

WELL DONE: Ong presenting a certicate to Resort World senior vice-president Datuk Cheng Wah (right) in Kuala Lumpur Thursday. Looking on are conference organising chairman Yeow Thit Sang (left) and International Real Estate Federation (Malaysia) president Kumar Tharmalingam.

“Many of the units which are classified as unsold or overhang so far, are actually newly-launched projects where construction has yet to take off and such units are not included under the new definition,” Ong pointed out.

The new definition, which saw a different set of figures, would be used for property analysis and forecasts after it received consensus from all relevant agencies, Ong told reporters after opening the Real Estate Investments Trusts conference here yesterday.

To a question, Ong said the amount of unsold property was “manageable.”

“Developers are generally more cautious and build more low-medium and medium-cost units which are in demand.

“The Government is also more cautious in granting approval,” he said.

Earlier, Ong presented certificates to representatives from four companies whose projects were classified as “highly commended” at the 2003 Prix D' Excellence Awards ceremony held in Berlin, Germany in May.

The projects are Genting Highlands Resort, Sutera Harbour Resort, Sabah, Dataran Maybank, Kuala Lumpur and Stesen Sentral, Kuala Lumpur.