Residential units below RM500,000 remain in demand

by IZZAT RATNA/ FILE PIC

Real Estate and Housing Developers’ Association Malaysia (Rehda) expects number of future launches on residential units priced below RM500,000 to increase in second half of 2017 (2H17).

Based on findings of Rehda’s Property Industry Survey (PIS) for 1H17, residential properties continue to lead new launches with 53% of them comprising strata units despite volume drop in overall performance by 9% from the preceding half (1H17:32%, 2H16:43%).

Although there is a reduction in new launches, sales performance showed slight growth from 45% to 48% with an increased demand in landed properties particularly the two to three storeys terrace and single storey, as well as serviced serviced apartment and low cost house.

Number of launches for both residential and commercial were reduced by 31% and 34% against the previous half.

Albeit the reduction, similar percentage of 4% for commercial units launched were recorded for 1H16 and 2H16.

Strata properties continued to dominate residential market with most launches in Selangor mainly Klang, Shah Alam, Hulu Langat, Seri Kembangan and Puchong.

The survey revealed that 41% of unsold units are properties below RM500,000 in Johor, Kedah, Melaka, Pahang, Perak and Perlis, due to difficulties in securing end financing and loan rejection, low demand and unreleased Bumiputera quota.

PIS data and findings were gathered by Rehda from 153 respondents across Peninsular Malaysia.