Property developers in Peninsular Malaysia, which reported a reduced number of property
launches and sales in 1H21, are pessimistic on the market and the industry for 2H21, but
optimistic on prospects for 1H22, according to the Real Estate and Housing Developers’
Association Malaysia (Rehda) Property Industry Survey 1H21 and Market Outlook 2H21 and
1H22. A total of 15,076 units are planned to be launched in 2H21, of which 9,319 are strata
residential units and 5,549 landed residential units. A total of 89% of survey respondents with
future launches expect their sales performance for the first six months to be 50% or below.
Terengganu, Perak, Kedah, Perlis, and Negri Sembilan plan to launch residential units within the
RM250,001-RM500,000 price range, while Selangor, Kuala Lumpur and Penang are launching
residential units in the RM500,001-RM700,000 bracket.
The survey indicated that a total of 11,601 units were launched in 1H21, of which 98.5% (11,422
units) were residential. This was an 8.21% decline from 12,640 units in 2H20, of which 12,628
were residential. Total sales performance contracted 39% in 1H21 with 4,540 units of property
sold (comprising 4,405 residential units), compared to 45% in 2H20 with 5,742 units sold
(comprising 5,736 residential units). In 1H21, 82% out of 180 respondents reported that they
have less than 30% of unsold residential units, with 43% of those units priced between
RM250,001 and RM700,000 compared with 51% in 2H20. A total of 58% of respondents
reported that they have unsold completed residential units over the last one to three years, with
the top three reasons being end-financing loan rejection, unreleased bumiputra units and
mismatched pricing.
Respondents with the increased cost of doing business have risen to 72% from 51% in 2H20.
They reported a 17% increase in the overall cost of operations. Similarly, respondents who were
‘highly and severely affected’ have increased to 55% in 1H21 compared to 42% in 2H20.
Material and labour cost topped the list of factors affecting developers’ cash flow within the
period under review, followed by compliance cost and financing cost.
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