This is following the industry players are not optimistic about consumer spending power in the coming year
by AUFA MARDHIAH / pic AUFA MARDHIAH
THE Real Estate and Housing Developers’ Association Malaysia (Rehda) is expecting the property sector to have a neutral outlook for the first half of next year (1H23).
The association said the outlook is derived from the outcome of the Property Industry Survey 1H22 and Market Outlook for 2H22 and 1H23 which recorded a decrease in both launched units and sales performance.
“The survey, which was conducted before the dissolution of the Parliament on 150 members across Peninsular Malaysia, recorded a decline of 26% or 7,843 units launched in 1H22 compared to 10,665 units in 2H21, whereas sales performance recorded a decline of 5% for the period.
“On the breakdown of sales performance by property type, 94% are residential properties and 6% are commercial properties, with two- and three-storey terraced houses dominating most of the launched and sold units in 1H22 and majority of the units sold were from Seremban, Negri Sembilan, and Jasin, Melaka,” Rehda president Datuk NK Tong said during a media briefing today.
On the property selling price, Tong said 64% of the launches were priced RM500,000 and below.
Tong added that the survey also recorded that 98% buyers for 1H22 were 98% local buyers and 2% foreign buyers — ranging from first-time homebuyers (42%), upgrader (32%), investor (19%) and company (7%).
Meanwhile, Tong said the survey showed that there were 55% of the respondents have unsold residential units and 38% have unsold commercial units.
“Terraced houses (31%) and shop lot or shop offices (67%) tops the list of unsold units for both residential and commercial units, respectively.
“Some 29% of the unsold residential units were priced within RM500,001 to RM600,000 whereas some 355 of the unsold commercial properties were priced at least RM1 million,” Tong said, adding that among the top reasons for unsold residential units are end-financing loan rejection, unreleased Bumiputra lots and high pricing/low demand or interest.
On affordable housing, Tong said the survey showed 40% of respondents acknowledged the presence of an affordable housing component in their projects in 1H22, of which it accounted up to 50% of their development projects.
Meanwhile, Tong said the survey also highlighted that the overall costs of business operations have increased to an average 17% in 1H22, with the top three cost components affecting cashflow in the period being material and labour cost, compliance cost and land cost.
“Some 91% of the respondents said they were affected by the current economic situation and had implemented several cost-cutting measures for both operation and production such as suspending recruitments, lowering salaries, delaying planned project launches and limiting the scale of launches,” he added.
On the market outlook, Tong stated that 52% of respondents plan to launch projects in 2H22 and 66% expect 50% sales performance or less.
“The forecast for 2H22 and 1H23 remains neutral, however, respondents are not optimistic about consumer spending power in the coming year,” he concluded.