PETALING JAYA: More than half of developers are avoiding property launches in the second half of 2024, according to a Real Estate and Housing Developers' Association (Rehda) survey.
Rehda president Datuk Ir Ho Hon Sang said 56 per cent of the respondents for its Property Industry Survey for 1H2024 and Market Outlook for 2H2024 and 1H2025 are not planning to launch projects in the 2H2024.
He said that unfavourable market and business constraints such as financing and operation are among the top reasons developers not hold their plan to launch project in the latter part of this year.
He added that lack of suitable product or land bank location, along with buyers' low demand in project location also leads to softer market.
Ho said higher number of unsold stock is another factor although the number has declined.
"49 per cent of respondents reported unsold completed residential units as of June 30 with the top reasons led by end-financing loan rejection by 23 per cent, followed by low demand or interest (19 per cent) and Bumiputera lots (18 per cent).
"46 per cent of respondents reported having unsold completed units priced at RM500,000 or below," he said at a media briefing on the survey here today.
Also present were Rehda deputy president of Datuk Zaini Yusoff, and Rehda deputy secretary general Carrie Fong Kah Wai.
Ho added that 33 per cent of unsold completed Bumiputera lots aged more than 36 months with 47 per cent of it priced between RM500,000 and RM700,000.
However, he said sales performance recorded marginal growth with 13,445 units sold in 1H2024 with 65 per cent or 8,699 units were from total unsold units, and the remaining were from new launches.
"Developers are still treading carefully when it comes to their business operations, despite the improving industry conditions in terms of launches and sales," said Ho.
He added that this is expected, given the increase in prices for some building materials, which hit smaller developers harder than larger development companies.
"We hope to hear positive news for the industry in the upcoming Budget 2025 announcement next month.
"We should be able to enjoy a robust and thriving property industry should the major industry challenges are being mitigated," Ho said.
In its Property Industry Survey for 1H2024 and Market Outlook for 2H2024 and 1H2025, the association revealed that 49 per cent of 162 out of over 1,500 Rehda members in Peninsular Malaysia are neutral about the outlook in the second half of 2024 while 24 per cent are optimistic.
This is compared to 45 per cent respondents being neutral and 34 per cent positive view for 1H2025.