Business

Developers maintain neutral outlook for property sector in coming year

With elections, pandemic done with, industry players can be optimistic for year ahead

Updated 3 years ago · Published on 17 Aug 2023 5:16PM

Developers maintain neutral outlook for property sector in coming year
A total of 14,392 residential units were launched between January and June 2023, recording about 50% increase year-on-year compared to the same period previously, according to the Rehda Property Industry Survey for the 1H 2023 and Market Outlook for 2H 2023 and 1H 2024. – ABDUL RAZAK LATIF/The Vibes file pic, August 17, 2023

PETALING JAYA – Property developers have maintained a neutral outlook for the property market over the coming year but with increased optimism in the first half of 2024 (1H 2024), said Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk N.K. Tong. 

He said, with the pandemic and state elections over, it allows the property developers to be more optimistic for the year ahead. 

“Now what we can see is that the pandemic is behind us. So, the fact is that it allows us to be a bit more optimistic. The elections are over, both at federal and state. There are no surprises, I think there’s less disruption.  

“Everyone is now focused on moving forward and hopefully, the states, regardless of which government presides, are all focused on the growth of their states. And I think it all works well for the people, for the industry, and for general economy,” he said at the media briefing on Rehda Property Industry Survey for the 1H 2023 and Market Outlook for 2H 2023 and 1H 2024 here, today.

The survey, conducted by the Rehda Institute, saw the participation of 148 member developers. It was found that 62%of the launches within the period under review were priced at RM700,000 and below.

A total of 14,392 residential units were launched between January and June 2023, recording about 50% increase year-on-year compared to the same period previously (9,426 units; 28%). 

As for unsold units, 53% of the respondents reported to have unsold completed residential units at the end of the review period, mostly aged between 0-12 months (47%) and beyond 36 months (31%).

Meanwhile, Tong said sales of residential properties in 1H 2023 increased to 11,273 units (1H 2022: 3,163 units), out of which 35% comprised new launches. 

On future launches and the outlook for 2H 2023 and 1H 2024, he said about half of the respondents planned to launch their projects in 2H 2023 (53%), with three-quarters of them anticipating sales of 50% and below. 

Most of these planned launches are priced between RM150,001 and RM300,000, particularly in Kedah/Perlis, Melaka, Pahang, Penang and Perak, he added. 

The survey respondents have maintained a neutral view of the business/economic and property industry outlook for the coming year, with increased optimism for 1H 2024. – Bernama, August 17, 2023

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