KUALA LUMPUR (Sept 20): Real Estate and Housing Developers' Association Malaysia (REHDA) is optimistic on the property industry outlook for the second half of 2017 (2H17) and first half of 2018 (1H18), in tandem with the positive gross domestic product (GDP) growth projection.

Speaking to reporters at a media briefing today, REHDA president Datuk Seri FD Iskandar explained the optimistic outlook was because of the broad numbers announced by the country, namely GDP (growth of) 5.8%, and because people are more confident of retaining their jobs.

“It can be because of the broad numbers that the country had announced, the 5.8% GDP. Secondly, a lot more people are more confident in retaining their jobs, compared to a year ago,” FD Iskandar said. 

According to findings of the REHDA Property Industry Survey (PIS) 1H17, which was gathered from 153 respondents in Peninsular Malaysia, it said majority of respondents were overall neutral towards the economic or business outlook, as well as the property market for 2H17 and 1H18. 

The survey noted 16% of respondents are optimistic on the property industry outlook from 2H17, while an increase to 26% of respondents are optimistic for 1H18.

Meanwhile, the number of future launches is anticipated to increase in 2H17, with moderate sales performance expected within the first six months of launches. 

“48% of the respondents planned to launch in 2H17 with 17,535 units. However, 76% of the respondents with future launches anticipate their sales performance to be 50% and below,” FD Iskandar said.

FD Iskandar explained home buyers do not get their desired margin for housing loan and it now takes a longer time to receive their loan approval.

The survey also highlighted the total units of properties launched in first half of 2017 (1H17) was reduced by 32% to 9,089 units, from 13,276 units in 2H16.

In addition, FD Iskandar said strata properties continued to dominate the residential market, with most launches being mainly in Selangor, covering areas in Klang, Shah Alam, Hulu Langat, Seri Kembangan and Puchong. 

Furthermore, the survey noted 44% of the launches were RM500,000 and below.