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,Rehda president Datuk Soam Heng Choon

PETALING JAYA: Malaysian developers are more optimistic about the outlook of the property industry in the second half of 2021 compared with the first half of this year, on the expectation that the broader economy will recover and boost buying sentiment.

In a survey of 134 respondents by the Real Estate and Housing Developers’ Association (Rehda), it was revealed that 20% are optimistic about the property market and sales performance in the second half of 2021, compared with just 8% in the first half.

The survey also showed that 26% are optimistic about residential sales growth in the second half of 2021, compared with just 8% in the first half.

Rehda president Datuk Soam Heng Choon said the global vaccine rollout will improve the country’s economic outlook, which will in turn spur the local property sector.

“With more countries recovering from Covid, our trade will improve and this will boost our economy.

“When the broader economy recovers, the property market will, as well,” he said during a media briefing today.

Meanwhile, in its property industry survey for the second half of 2020 and market outlook for both the first and second half of 2021, Rehda said a total of 13,037 units are being planned for launch in the first half of 2021, consisting of 12,874 residential units (6,998 strata units and 5,876 landed units) and 163 commercial units.

Amongst respondents with future launches, the majority of them (83%) anticipate their sales performance to be 50% and below for the first six months.

The survey revealed that Kedah, Perlis, Negeri Sembilan, Pahang and Selangor planned to launch residential units within the RM250,001 to RM500,000 price range, whereas Johor, Penang and Wilayah Persekutuan aimed to offer units priced between RM500,001 and RM700,000.

Additionally, Rehda said respondents were neutral about the economic and business outlook, as they were concerned about consumers’ purchasing power in the first half of the year.

The same was reported with the property industry outlook, specifically with regards to residential sector growth.

However in both cases, Rehda said there are increased optimism for the second half of 2021.

In terms of performance for 2020, Rehda said the second half of last year saw the launch of 12,640 residential units compared with 12,556 units in the second half of 2019, with two-and-three-storey houses being the most popular (4,120 units) followed by service apartments (3,250 units) and apartments / condominiums (3,059 units).

Price-wise, 80.8% of the units were in the range of RM250,001 and RM500,000; and between RM500,001 and RM700,000; while 7.8% were within the RM100,000 and RM250,000 range and 6.4% were priced between RM700,001 and RM1mil.

Separately, Rehda said sales performance was better in the second half of 2020, increasing from 43% in the second half of 2019 to 45% in the period under review.

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