Property industry needs to address overhang
The Edge Daily 20/10/2005 By Ashwin Raman

Property overhang, management and maintenance are key issues that need to be addressed before the industry can mature, said Housing and Local Government Minister Datuk Seri Ong Ka Ting.

“All of us – the government, private sector, NGOs and public – must work hand in hand to help develop this key sector in the right direction,” he said.

Delivering his keynote address at the National Property and Housing Conference 2005 in Petaling Jaya on Oct 20, Ong said property developers needed to undertake preliminary research for their projects to prevent property overhang.

He said such research was crucial as it would help property developers conduct feasibility studies, strategic planning, market research and pre-launch exercise to prevent a property overhang.

“Gone are the days when buyers will just snap up whatever they have been offered by developers,” he said.

On the issue of management and maintenance, Ong said it was more than just rent collection, light bulb changing, garbage disposal and the removal of shoe-prints from toilet seats.

According to him, property management is a science that looks at the formulation of value accretion strategies, improving revenue flows, unlocking latent real estate values through ‘marriages’ with adjacent properties and renegotiation of tenancies.