Ho (centre) and Tong (third from right) hold a copy of the survey report while (from left) Chia, Tan, Zaini, Azmir and Fong look on.

PETALING JAYA: Property developers reported a 45% decline in sales performance and a 7% decline in launches in the second half of 2024 compared to the first half, according to the latest survey by Real Estate and Housing Developers’ Association Malaysia (Rehda). 

The 177 respondents of the Property Industry Survey 2H 2024 and Market Outlook for 2025 reported 3,802 units sold in the second half of 2024 compared to 6,907 units in the first half. Meanwhile, a total of 13,611 units were launched in the second half of 2024, compared to 14,653 units in the first half. The findings were based on the same respondents for each half-year period. 

Rehda president Datuk Ho Hon Sang said the decline can be attributed to developers completing more of their launches in the first half of 2024.

“Despite the lower numbers reported by our members, we believe that this is due to member developers completing their launches in early 2024, and we expect to see an increase in the next survey,” he said.

The top three property types that were sold the most were apartment and condominium at 1,129 units, followed by serviced residence at 995 units and two- and three-storey terrace homes at 801 units. 45% of the launches were priced between RM500,001 and RM700,000. 

Meanwhile, 41% of the respondents reported unsold completed units, among which a majority reported that the units were within the RM400,001 to RM500,000 price range. The top three property types among the unsold completed units were serviced residences, followed by single-storey terrace homes and condominiums. 

68% of the respondents also have faced financing issues with buyers’ difficulty in securing end-financing being the most prevalent. The majority of respondents reported loan rejection rates of 16% to 45% over sales for homes priced between RM300,001 and RM700,000.

A total of 73% of the developers reported an increase in the cost of doing business at the rate of 3% to 6% while 56% said they faced challenges in building materials such as high prices, shortages and inconsistent supply, challenges in labour supply, lengthy approval process for labour and high wages. 

“There are still a lot of worries in the industry given the various challenges facing the stakeholders, as well as uncertainties from utility hikes, petrol subsidy review, unexpected taxes and cost impact due to conditions imposed by various agencies that will drive costs higher which ultimately will affect the rakyat,” Ho said. 

Deputy President Datuk Zaini Yusoff said the industry continues to grapple with high compliance costs and Rehda is working with local councils and the Housing and Local Government Ministry to bring it down.  

“Compliance costs have increased over the years, and we (at Rehda) are trying to mitigate it so that house prices can be made more affordable,” he said. 

In terms of market outlook, 56% said they plan to launch their new projects in the first half of 2025. For the second half of 2025, 60% of them were neutral about the domestic economic environment, while 24% were optimistic. 57% of the respondents were also neutral about the residential sector growth in the second half of 2025, while 30% were optimistic. 

“Government initiatives such as the Rapid Transit System, Johor-Singapore Special Economic Zone, National Energy Transition Roadmap (NETR) and the New Industrial Masterplan 2030 (NIMP 2030) are strong initiatives to spur the economy and developers believe the (impact) will play out in the second half of 2025,” Ho said. 

Also present were exco member Charlie Chia Lui Meng, secretary-general Datuk Tan Hon Lim, immediate past president Datuk NK Tong, vice president Datuk Seri Azmir Merican, Rehda Wilayah Persekutuan (Kuala Lumpur) chairperson Carrie Fong Kah Wai. 

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