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Monday, July 16, 2012

'Try promos, exhibitions to sell off Bumi units'

KUALA LUMPUR: Property developers should try to sell off Bumiputera units through promotions and property exhibitions, before asking for a release mechanism for the unsold units.

"They should advertise in Malay and English newpapers and embark on other promotion measures. If not, they would be stuck and there will be property overhang," said Shikin Taib, managing director of MMC Sdn Bhd.

According to findings from a survey conducted by the Real Estate and Housing Developers' Association Malaysia (Rehda), Bumiputera allocation is the top reason contributing to property overhang.

Developers are complaining that unsold Bumi lots are affecting their profit margin.

"They are getting an average 30 per cent profit margin from each development. Their margins would be affected if they don't sell the Bumi lots at the beginning of the project," said Shikin.

MMC was the organiser of the Bumiputera Property Exhibition (BPEX 2012), a property showcase held over the weekend. It exhibited RM1.5 billion worth of properties, majority of which was located in the Klang Valley. Overall, 42 property developers took part, including PKNS, Glomac, MK Land, The Lion Group, Glenmarie Properties, Melati Ehsan and Equine Capital. They exhibited their residential properties, ranging from RM99,000 to RM8 million per unit.

Shikin said some RM100 million is expected from the sale of Bumi lots, about 40 per cent more than the last BPEX held in April.

By Business Times

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