The global pandemic which affected Malaysia since last year has contributed considerably to the lacklustre performance of the Malaysian property market. This is evident from the results of the Real Estate Housing Developers Association (REHDA) Property Industry Survey (second half) 2H of 2020. In fact, only a slight increase of launched units was recorded at 0.7% amongst the 134 respondents, with only a 2% point increase in sales performance. Launches
The 2H of 2020 saw the launch of 12,640 residential units as compared to 12,556 units in 2H 2019. The survey showed that two- and three- storey terrace houses were the most popular offering (4,120 units) followed by serviced apartments (3,250 units) and apartments/condominiums (3,059 units). Price-wise, 80.8% of the units fell between the range of RM250,001 to RM500,000 and RM500,001 to RM700,000. Meanwhile, 7.8% were within the RM100,000 to RM250,000 range while 6.4% were priced between RM700,001 to RM1 million. Sales Performance
Sales performance was better in 2H 2020, increasing from 43% in 2H 2019 to 45% in the period under review. Out of the 5,736 residential units sold, 2,467 units were in the two- to three-storey terrace houses category, making it the most popular choice. The second top performing type was serviced apartment at 1,225 units while 1,082 units of apartments/condominiums were sold in the 2H of 2020 alone. First-time buyers made up a majority of purchasers in the period under review. Most homes bought were purhased for self-dwelling, family members and investment. Unsold Units
64% of respondents reported to have unsold residential units in the period under review, with many of them having less than 30% unsold stock for both residential and commercial types. At 30%, terrace house had the highest percentage of unsold residential type, followed by semi-detached units/ bungalows at 29% and apartments/ condominiums at 26%.
End-financing issues continued to be the main reason for loan rejections in2H 2020, which affected 92% of respondents. Other top reasons were unreleased Bumiputera units and low demand/interest.