The number of Real Estate and Housing Developers’ Association Malaysia (Rehda) members with project launches fell to 32 percent in the first half of 2016 from 42 percent in 2H 2015, showed Rehda’s Property Industry Survey 1H 2016 & Market Outlook for 2H 2016.
The number of units launched also dropped from 9,938 in 2H 2015 to 7,172 in 1H 2016 – a worrying trend considering that the nation still suffers from a shortage of homes.
“Based on the assumption of four persons in every household, we need 200,000 new homes per year in Kuala Lumpur alone. However in 2015, only some 80,000 residential units were completed nationwide…with lesser supply, house prices will increase,” said Rehda president Datuk Seri Fateh Iskandar Mohamed Mansor.
National Property Information Centre (Napic) data released in April show that the number of completed residential units declined in 2015 to 80,850 from 2014’s 107,747.
Rehda noted that the sales performance of its respondents also fell to 39 percent in 1H 2016 from 52 percent in 2H 2015. Notably, only 2,829 units were sold out of the 7,172 units launched in 1H 2016. Comparatively, developers moved 5,195 units of the 9,938 units launched in 2H 2015.
Fateh Iskandar revealed that the trend in new launches reverted to landed residential units, the bulk of which are affordable homes.
The number of landed residential properties launched jumped from 49 percent in 2H 2015 to 65 percent in 1H 2016, while strata home launches declined from 51 percent to 35 percent.
“Launches of landed properties were mainly in Gombak, Sepang and Cyberjaya in Selangor, and Ulu Tiram and Tebrau in Johor,” he said.
In 1H 2016, two- and three-storey terrace houses emerged as the most favoured residential type, overtaking condominiums and apartments, the most popular in 2H 2015.
While the number of two and three-storey terrace homes launched fell from 2,509 units in 2H 2015 to 2,345 units in 1H 2016, the number of units sold slightly increased from 1,365 to 1,473.
The number of apartments and condominiums launched drastically fell from 3,830 units in 2H 2015 to 1,550 units in 1H 2016, while the number of units snapped up by buyers dropped from 1,844 to 548.
Commercial units launched decreased from 331 in 2H 2015 to 233 in 1H 2016, with 158 and 116 units sold respectively.
Looking ahead, the survey showed that only 45 percent of the respondents plan to launch projects in 2H 2016, comprising 7,613 strata homes, 6,187 landed homes and 811 commercial units.
The survey polled 157 Rehda members between January and June.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
