“The number of unsold properties is still very high. It is about 170,000 units. It has been coming down but the level is still very high,” she told a briefing for editors yesterday.

“The home ownership campaign that the government introduced last year has helped clear some of these unsold units. But in terms of unsold properties, we are worried about commercial properties because even before the pandemic, we had a very high supply of office space and shopping complexes.

“With the pandemic, greater online sales and more work-from-home arrangements, the need for office space will come down and the demand will not be as high as before.”

Nor Shamsiah said BNM is concerned that the excess capacity in the market would be much worse under the new normal.

“Luckily, the banks’ exposure to this segment is very small. It accounts for 3.2% of the total loans,” she said.