CGS-CIMB sees developers under its coverage clinching property sales of RM15.2b

CGS-CIMB sees the 16 developers under its coverage posting a total of RM15.2 billion in property sales in 2022, about the same as last year, based on targets set by them.

It said this will be driven by stronger new product offerings as most of them are ramping up launches in the second half of 2022 (2H22) compared to the 1H22.

“Nonetheless, new launches could be delayed or cancelled depending on macro headwinds, in our view,’’ the research house said in a note.

CGS-CIMB noted that the16 developers under its coverage chalked up higher new sales in 1H22 versus 2H21, following the easing of lockdowns.

In contrast, a survey by the Real Estate Housing Developers’ Association (Rehda) showed that property developers had weaker new property sales/launches in 1H22

compared to 2H21 and were less optimistic about the property outlook.

The association pointed out that Peninsular Malaysia property developers reported a 26% decline in unit launches and a 5% drop in sales in 1H22 from 2H21, while 48% of developers surveyed by Rehda said they did not plan any launches in the 2H22.

Due to the unfavourable market conditions, developers are planning to launch

more residential properties within the RM250,001 to RM500,000 range with 44% of developers saying they are pessimistic about consumers’ purchasing power during this period.

Rehda’s survey also revealed that first-time homebuyers made up 42% of 1H22 property buyers, followed by upgraders at 36%.

The latest market outlook survey covered 150 respondents. — Bernama

  • This article first appeared in The Malaysian Reserve weekly print edition