(From left) Chong, Zaini, Ho, Fong and Tan posed for the media after the briefing.
PETALING JAYA: The property market continues to stabilise in 1H 2024 with a small uptick in launches and sales performance, according to Real Estate and Housing Developers’ Association Malaysia (Rehda).
Launched units grew 7% to 11,814 units while units sold increased by 11% to 13,445 units, Rehda members reported in their Property Industry Survey for 1H2024 and Market Outlook for 2H2024 and 1H2025.
Notably, 65% of the units sold were previously unsold units, while new launches grew on the back of a low base which contracted by 23% in 2H 2023. Nearly three-quarters of the new launches were in the price range of RM300,000 to RM700,000.
A total of 162 developers took part in the survey. At the media briefing, president Datuk Ho Hon Sang said while the survey doesn’t reflect all launched projects or sales made within the period under review, the results are indications of a stabilising industry despite being riddled with challenges.
Among the challenges, 74% said the cost of doing business has increased compared to 2H2023, with 69% citing that their business operation had been critically impacted by the cost hike in building materials.
A total of 72% also faced financing issues, with loan rejection experienced by their prospective customers being the overwhelming challenge.
Loan rejection was also named the top reason for developers holding completed but unsold units. Among the 49% of respondents who reported holding unsold units, 23% of them said loan rejection was the reason, 19% said demand or interest was low for the products and 18% said the unsold units were bumiputera lots. Respondents were allowed to name multiple factors for the question.
Respondents also called for lower development charges and land conversion premiums as well as exemption of utility contribution charges to minimise the cross-subsidisation of affordable housing development, which is currently being borne by home buyers in the open market.
For 2H 2024, only 44% planned to launch their developments, with three-quarters of them bracing for sales performance to be 50% or below for the first six months.
Nevertheless, developers were more optimistic about the market in 1H2025. Ho said while developers are still cautious about their business operation, economic impetus such as Microsoft’s investment in data centres, infrastructure projects and the strengthened ringgit brought confidence to the property industry.
“Developers are still treading carefully when it comes to their business operations, despite the improving industry conditions in terms of launches and sales,” he said.
“We hope to hear positive news for the industry in the upcoming Budget 2025 announcement next month. We should be able to enjoy a robust and thriving property industry should the major industry challenges be mitigated,” he added.
Also present were deputy president Datuk Zaini Yusoff, vice-president Datuk Edward Chong Sin Kiat, deputy secretary-general Carrie Fong and exco member Datuk Tan Hon Lim.
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