PETALING JAYA (Oct 21): While many developers expected the second half of this year (2H2021) to be a washout due to the pandemic and the ensuing lockdown, a majority of them are taking an optimistic stance for the 1H2022 as the market is on the recovery path, said Real Estate and Housing Developers’ Association Malaysia president Datuk Soam Heng Choon (pictured).
This is based on the “REHDA Property Industry Survey 1H2021 and Market Outlook 2H2021” survey, which was released today. It gathered feedback from up to 180 developers in Peninsula Malaysia.
The survey stated that of a total of 11,601 units launched in 1H2021, only 39% or 4,540 units were sold compared to 45% recorded in 2H2020.
Soam explained that the prolonged lockdown is the main reason that caused the decline of sales.
“We went into a lockdown from June 2021 to the end of August/September, and sales activities could only started opening up in September and October -- they can see that 2H2021 is almost a washout. Some held back some launches, some couldn't process a launch due to the lockdown. What they are planning to do is focusing on doing sales on their existing project. [This is why] only 36% of our survey respondents are planning a launch in 2H2021,” Soam shared in a virtual press conference on Oct 21.
Overall launched and sales performance (Source: REHDA)
He added that unfavorable market conditions are among the top reasons, which accounted for 40% the developers, that they did not plan for fresh launches in 2H2021. Other key reasons are current project delays, delayed approvals from the authorities, higher number of unsold stock and business constraints such as financing.
Meanwhile, a total of 15,076 units were launched by the respondents who are planning to roll out new projects or phases during the remainder of the year. However, the majority of them (89%) are anticipating their sales performance to be at 50% and below.
Nonetheless, 87% respondents agree that as the country enters the endemic phase, it will accelerate property market recovery.
It is also worth noting that 83% of the respondents felt that the property market will fully recover in the following six to 24 months after the end of 2021.
“Respondents are mostly pessimistic of the market in 2H2021 but more optimistic in the following six months in 1H2022 in view of the plans that our government had put in place,” Soam noted.
Get the latest news @ www.EdgeProp.my
Subscribe to our Telegram channel for the latest stories and updates