Property developers are hoping the government to extend the Home Ownership Campaign (HOC) to December this year in order to accelerate the recovery in the property market, said Real Estate & Housing Developers’ Association (REHDA) President Datuk Soam Heng Choon.
The latest survey conducted by REHDA showed that 89% of the respondents said they have garnered sales through HOC, while 87% indicated that the programme was effective in clearing stocks, reported The Edge Markets.
From 1 June 2020 to 28 February 2021, HOC’s total sales hit RM25.65 billion, with 34,354 residential units sold.
The bulk of sales (37%) comprised properties priced from RM500,000 to RM750,000, said Soam.
Properties priced from RM300,000 to RM500,000 accounted for 26% of sales, while 19% were priced between RM750,000 and RM1 million.
Serviced apartments, double-storey homes and condominium apartments emerged as the top three best-selling property types.
Soam also revealed that more developers are more optimistic of the industry’s growth and performance in the second half of 2021 (H2 2021).
He pointed that the percentage of respondents who are optimistic about the property market rose to 20% from just 8% in H1 2021.
The percentage of respondents who are pessimistic and very pessimistic, on the other hand, fell to 23% and 4%, from 41% and 7%, respectively, in H1 2021.
The improved sentiments come as developers took a cue from the country’s economic recovery as more economic sectors will reopen, with the ongoing vaccination programme – and which essentially is expected to have positive spillover to the property market, said Soam.
The survey showed that 16% of respondents are optimistic of the domestic economic environment in H2 2021, up from 6% in H1 2021. Those who are pessimistic declined from 51% in H1 2021 to 22% in H2 2021.
There is also increased optimism on the purchasing power of consumers, with 23% of respondents feeling optimistic, up from 12% previously.
Meanwhile, the survey showed that unsold residential units dropped to 3,972 units in H2 2020 from 5,345 units in 2019.
“In H2 2020, respondents with unsold residential units has reduced to 64% from 71% in H2 2019. Meanwhile, 33% of respondents have unsold commercial stock in H2 2020, lower compared to 42% of respondents,” said Soam as quoted by The Edge Markets.
The unsold units refer to properties that remain unsold following completion in the last three years.
He underscored that end-financing continue to be the top reason for the unsold units, with 92% or respondents saying they experienced this issue. Unreleased Bumiputera units came in second, followed by low demand due to mismatch of products and pricing or wrong location.