The Malaysian property market is expected to see improvements in the second half of the year, according to the Rehda Property Industry Survey for H2’23 and Market Outlook for 2024. Despite the anticipated increase in property prices due to rising building material costs, developers remain confident in the market’s potential growth. Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk NK Tong expressed optimism during a media briefing, highlighting a more positive outlook for the domestic economic environment.
Construction challenges have been a significant issue for developers, with 56% of survey respondents facing obstacles in H2’23. High prices of building materials have been a critical factor impacting business operations, leading to higher construction costs. Tong emphasized the importance of addressing this issue effectively to prevent further negative impacts on the Malaysian population.
The Property Industry Survey revealed a neutral outlook towards business and property industry for H1’24. In H2’23, residential launches and performance experienced a slight decline compared to the first half of the year, although sales performance reported a marginal increase. The survey recorded 4,627 out of 12,017 sold units as new launches in H2’23, indicating strong demand for housing, particularly for apartment/condominium units and two- or three-storey terrace homes.
Despite the setback in new unit launches, Tong noted that Malaysians still value residential property as a long-term investment and a place to call home. However, there is a concerning increase in unsold completed units in the RM300,001-RM400,000 category, particularly affecting lower income groups. Tong highlighted the challenges faced by developers who have cross-subsidized affordable units, impacting both open market unit sales and affordable unit sales.
Regarding the proposed Urban Redevelopment Act, Tong clarified that the intention is not for developers to seize land for profit. He emphasized that responsible developers have other options to acquire land for development. Rehda supports the vision of enhancing the urban fabric of cities to remain competitive and attractive globally for the benefit of the population.
In conclusion, the Malaysian property market is poised for growth in the second half of the year, despite challenges such as construction obstacles and rising building material costs. Developers remain optimistic about the market’s potential, emphasizing the importance of addressing issues effectively to ensure sustainable growth and affordability for all Malaysians.