There has been a slowdown in sales of commercial properties in the state, said Perak Real Estate and Housing Developers' Association Malaysia (Rehda) chairman Tony Khoo. (Pix by EFFENDY RASHID)

IPOH: There has been a slowdown in sales of commercial properties in the state, said Perak Real Estate and Housing Developers' Association Malaysia (Rehda) chairman Tony Khoo.

He said if shoplots remained unsold for more than one year after the project launch, the developers would cover the holding cost by renting them out or selling to other investors.

“This is what the developers have done so far to resolve the problem," he said.

He added that usually, the rented units will be bought by tenants when the location begins booming.

Khoo said most of the property issues revolved around the Goods and Services Tax (GST), economic slowdown and strict bank loan procedures.

Perak Menteri Besar Datuk Seri Dr Zambry Abdul Kadir said the state government is in the midst of observing the pattern of development in the state.

"I have not received the actual numbers of empty houses or properties in the state but as far as I'm concerned, there is no property glut reported here.

"Instead, we keep receiving many applications from the developers to build new properties including for housing schemes here. Each time during the state executive council meetings, the state government will have new applications to process," he added.

He said that if there was indeed a glut, the common solution would be a blanket freeze on new developments.