By Property Report
The fact that high-end properties are lingering longer than usual has not deterred Malaysian developers from launching projects more than ever.
Around 15,082 residential and commercial units were launched in the second half of 2017, according to a survey of 200 members of the Real Estate and Housing Developers’ Association Malaysia (REHDA). This is the highest number of launches in the second half in the last few years.
Yet the Malaysian market faced a glut of upscale developments at the same time. Units in the price range of MYR500,000 to MYR1 million (USD129,000-259,000) made up 45 percent of unsold properties in H2 2017, up from 31 percent in the first half of the year, the same survey showed.
Most of these unsold high-end units were in Johor, Selangor, and Negri Sembilan, said REHDA President Datuk Seri Fateh Iskandar Mohamed Mansor.
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The survey only polled REHDA members in Peninsular Malaysia.
Only 9,089 units were launched overall in the first half of 2017. “In 2H 2017, 34 percent of respondents had launches compared with 31 percent in 1H 2017,” said Fateh.
More affordable properties in the range of MYR1 million and MYR2.5 million only constituted 20 percent of unsold properties in H2 2017.
It is worth noting, however, that the total number of unsold properties by REHDA members declined by 6 percentage points from the first to the second half of the year.
“In 2H17, 66 percent of respondents stated to have unsold units, which is marginally lower than 72 percent recorded in the 1H17,” Fateh added.
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