PETALING JAYA: Developers are not really excited over the property market in the second half of 2024 (2H2024) as they think it will continue to be soft until year-end.
But they are highly bullish about the performance in the first half of 2025 on the back of a more optimistic outlook of the country's economic landscape, according to the Real Estate and Housing Developers' Association (Rehda).
"Developers are still treading carefully when it comes to their business operations, despite the improving industry conditions in terms of launches and sales," Rehda president Datuk Ir Ho Hon Sang said.
Ho added that this is expected, given the increase in prices for some building materials, which hit smaller developers harder than larger development companies.
Materials such as sand, glass and concrete had risen 13-15 per cent year-on-year as ofd June 30 this year.
"We hope to hear positive news for the industry in the upcoming 2025 Budget 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 said 49 per cent of 162 Rehda members surveyed in Peninsular Malaysia are neutral about the outlook while 24 per cent are optimistic.
This compared to 45 per cent respondents being neutral and 34 per cent holding positive view for 1H2025.
Ho said 56 per cent of the respondents are not planning to launch projects in 2H2024.
Unfavourable market and business constraints such as financing are among the top reasons leading to developers decided not to make their planned launches in the latter part of the year, he added.
Lack of suitable product or land bank, along with buyers' low demand in project location, also leads to softer market.
Higher number of unsold stock as another factor although the number has declined.
"Forty-nine 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).
"Forty-six 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 members' sales performance recorded a 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.