BUSINESS

PROPERTY PLAYERS MORE OPTIMISTIC ON SECOND HALF OUTLOOK -- REHDA

30/03/2021 04:26 PM

KUALA LUMPUR, March 30  -- Property players are feeling more optimistic about the market outlook for the second half of 2021 (2H21) compared with the first half of this year, according to a poll by the Real Estate and Housing Developers’ Association (Rehda) Malaysia . 

President Datuk Soam Heng Choon said the 2H21 market outlook was mainly driven by the expectation of a broader economic recovery expected to boost buying sentiment.

“With more countries recovering from COVID-19, our trade will improve and this will boost our economy. When the broader economy recovers, the property market will follow,” he said in a media briefing today.

He said 20 per cent of respondents of the survey, which covered 134 respondents, were optimistic about the property market and sales performance in 2H21 compared to eight per cent in the first half of this year while in the residential sector, 26 per cent of respondents were optimistic about 2H21 compared to eight per cent in the first half this year.

Soam said a total of 13,037 units were planned for launch in 1H21 of which 12,874 units were residential (6,998 strata units and 5,876 landed units) and 163 commercial units.

He said 83 per cent of respondents with future launches anticipated their sales performance to be 50 per cent and below for the first six months.

Meanwhile, Soam said respondents were neutral about the economic and business outlook for 2021 although notably, there were concerned about consumers’ purchasing power in the first half of the year.

He said 51 per cent of the respondents revealed that the overall cost of doing business increased by 12 per cent in the second half of 2020 and 98 per cent of respondents were affected by the current economic scenario while those that were “highly and severely affected” increased to 42 per cent compared with 26 per cent in the second half of 2019.

He added that compliance cost remained the number one cost component affecting cash flow followed by material and labour cost as well as land cost.

On the Home Ownership Campaign (HOC) 2020/2021, he said it had boosted sales performance with the majority or 89 per cent of respondents garnering their sales through the campaign and 87 per cent of respondents agreed that HOC was effective in clearing unsold stocks.

He added that Rehda hoped the government would be able to make an extension of HOC until December 2021 to help sustain property developers.

The survey also 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 Kuala Lumpur aimed to offer units priced between RM500,001 and RM700,000.

-- BERNAMA

 

 


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