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CLICK TO ENLARGEKUALA LUMPUR: A majority of developers are holding back on new launches for the remainder of the year in anticipation of better prospects for 2022, according to the latest property survey by the Real Estate and Housing Developers’ Association (Rehda).
The survey, which comprised 180 participants from all over Peninsular Malaysia, revealed that 22% of respondents were optimistic about the first half of 2022, compared with just 6% who felt the same way about the second half of 2021.
Rehda president Datuk Soam Heng Choon said the muted response for the second half of 2021 was due to the impact of the prolonged lockdown on the local property market.
“Because we went into a lockdown from June until the end of August and even into September for some, the second half of 2021 is almost a washout for most developers,” he said at a virtual briefing yesterday.
“Many held back their launches as a result and continued to conduct sales from their existing projects,” Soam said.
According to the survey, a combined 70% of respondents were very pessimistic (18%) or pessimistic (52%) about the second half 2021, compared with a total of 37% feeling the same way about the first half of 2022.
The survey revealed that 64% of respondents were not planning to launch new projects in the second half of this year.
The reasons cited for not launching their projects included unfavourable market conditions (40%); delays in construction or receiving local authorities’ approvals (18%); a higher number of unsold stock (17%); financing and operational constraints (12%); lack of suitable products or land bank location (7%); and low demand in project location (6%).
Soam said the property market’s prospects for 2022 would hinge on the recovery of the broader economy.
“If the broader economic recovery does happen, we anticipate that our industry will also improve.
“With an improved unemployment rate, rise in salaries and better job stability, there will be more buyers coming into the market.”
Soam said market optimism for next year would also hinge on the country’s ability to vaccinate the majority of the population.
“As we head into the endemic phase and assuming that a high number of the population is already inoculated, 83% of respondents said the property market would fully recover between the next six and 24 months.”
According to the survey, a total of 15,076 units are planned to be launched in the second half of 2021.
Of this, 9,319 units are strata residential units and 5,549 will be landed residential units.
About 89% of respondents with future launches anticipate their sales performance for the second half of 2021 to be 50% or below.