While experts have said that the local property market will remain challenging for the foreseeable future, developers are not resting on their laurels.
The buyers in the market are cautious and waiting for fat discounts from developers by taking advantage of the oversupply situation and competition in the market.
Developers have no choice these days but to offer potential buyers discounts and other incentives as they don’t want their stocks building up.
As it is, property overhang in Malaysia has risen 48 per cent to 30,115 units in the third quarter of last year compared with the same period in 2017.
Overhang as defined by Napic means residential units which remained unsold nine months after receiving the Certificate of Completion and Compliance (CCC) and Temporary Certificate of Fitness for Occupation (CFO). In simple terms, it means residential units are completed and ready-to-use but they remain unsold even after nine months.
Selangor State Development Corporation (PKNS) has an interesting value proposition to attract buyers.
The company is offering up to 20 per cent discounts on ready-built and ready-to-move properties offered through its ‘PKNS Mega Bonanza Promotion’ which runs until the end of this month.
The promotion will also offer more than RM1 million rebates during the period, for both Bumiputera and non-Bumiputera purchasers, which means anybody can buy.
PKNS acting chief executive officer Norita Mohd Sidek said purchasers will get up to 20 per cent discounts for selected residential projects like Daffina 3 and Daffina 2 and Elaisha in Kota Puteri, near Ijok, as well as Azhara in Antara Gapi.
Other pojects are Hijauan Enklaf and Anggun Kirana at Alam Nusantara, Setia Alam as well as 10 Residensi in Section 17, Shah Alam.
Commercial properties are also available for this campaign like Menara U and Menara U2 in Shah Alam.
“Buyers will have the opportunity to enjoy the documentation incentive worth up to RM15,000 for Hijauan Enklaf, Opal Residensi and 10 Residensi, as well as Taman Bayu Malawati (Kuala Lumpur),” said Norita.
Besides discounts and rebates, buyers will be given vouchers for electrical goods worth up to RM30,000 for the residential developments of Hijauan Enklaf and Opal Residensi, and the commercial development of Avenue Rasa.
PKNS will also provide Smart Home Vouchers worth up to RM15,000 for Anggun Kirana and Vega Residensi.
“With these vouchers, the purchasers will be able to install the smart home system application through which the owner can monitor their home when they are indoors or away,” she said.
Norita said there will also be early bird discounts for Estera, Dillenia, Kamelia and Violet at Bernam Jaya, as well as interior design vouchers worth up to RM10,000 for selected projects in Taman Bayu Malawati.
She expects the promotion to boost sales of various PKNS projects.