Property developers are more positive on 2019’s prospects as they see better consumer sentiment
By NG MIN SHEN / Pic By ISMAIL CHE RUS
The recent Malaysia Property Expo (Mapex) 2019 in Kuala Lumpur, which was part of the nation’s Home Ownership Campaign (HOC), recorded booked and secured sales of RM285 million involving 496 units of various types.
The three-day sales expo organised by the Real Estate and Housing Developers’ Association Malaysia (Rehda) and the Ministry of Housing and Local Government (KPKT) was aimed at helping the property sector to reduce the overhang and assist consumers to own homes with various discounts.
Rehda president Datuk Ir Soam Heng Choon said the association is maintaining its target where developers would achieve around RM3 billion in sales from the expo, despite recent comments from property surveyors that this may not be possible.
“We are very confident that we will beat the RM3 billion sales target. We are not looking at only these three days of sales at the HOC 2019, but also up to June 30 (the deadline for the overall campaign),” he said in Petaling Jaya yesterday.
He said many developers have reported more footfall at their sales galleries after the expo as many buyers will only decide to purchase a unit after visiting the expo.
The expo received 43,000 visitors over the three days. According to a Rehda survey conducted on 1,747 visitors at the expo, 77% of participants said they would buy a house within the HOC period, aided by incentives such as the stamp duty exemption and discounts from developers.
Some 26 of the total 55 developers who participated in the expo offered a total of 17,348 units valued at RM11.8 billion. Players who were present included the 1Malaysia People’s Housing Programme, UDA Holdings Bhd, Syarikat Perumahan Negara Bhd and Permodalan Nasional Bhd.
Meanwhile, property developers are more positive on 2019’s prospects as many are now seeing improved consumer sentiment.
According to the Rehda Property Industry Survey for the second half of 2018 (2H18), developers are positive on the sector’s outlook for 1H19, with the level of optimism anticipated to increase further in 2H19.
“Developers feel that more buyers are now coming into their show galleries. So, they think they have a better chance at doing sales compared to six months ago, when hardly anyone came to their galleries.
“After the launch of the HOC 2019, there has been an increase in footfall coming into developers’ galleries. The general sentiment from developers is that sales will be better this year,” he said.
The survey, which was based on 121 Rehda members in Peninsular Malaysia, revealed that 41% of respondents are planning to launch a total of 8,991 units in 1H19, comprising 3,637 strata units and 5,210 landed units.
However, 78% or 39 of the respondents are expecting their sales performance to stand at 50% and below within that period. The overall economic and business as well as property industry outlook remains neutral for 1H19.
2H18 saw fewer overall property launches, with 11,964 units launched versus 13,233 units in 1H18. Some 5,179 units were sold in 2H18, compared to 6,764 units in 1H18.
Apartments/condominiums and double-/triple-storey terrace houses were the most sold properties during 2H18 at 2,023 units and 1,793 units respectively. These categories also saw the highest number of launches during the period.
Some 53% of the residential properties launched in 2H18 were priced at RM500,000 and below, compared to 65% in 1H18 and 52% in 2H17. Some 38% of homebuyers in 2H18 were first-time buyers, down from 43% in 1H18.
Unsold stock fell in 2H18, with 62% of respondents reporting unsold units versus 75% recorded in 1H18. Terrace houses made up the largest portion of unsold units at 33%, followed by semi-detached homes/bungalows at 26% and apartments/condominiums at 25%.