BY Roznah Abdul Jabbar
The property sales performance in the first half of 2016 (1H 2016) has dropped significantlly to 39 per cent from 52 per cent in 2H 2015.
According to the Property Industry Survey 1H 2016 by Real Estate and Housing Developers’ Association (Rehda), the drop was mainly due to low demand and loan rejections.
Rehda president Datuk Seri FD Iskandar (pic) said the survey showed 74 per cent of respondents with unsold units of 30 per cent and below in 1H 2016 compared to 68 per cent in 2H 2015.
“The demand for houses is still high, but buyers do not have the capacity to get the margin of financing that they desired,” Iskandar said at a media briefing earlier this week.
He said end-financing and loan rejection remained major problems to nearly 70 per cent of the respondents and affected almost all price ranges. Iskandar added that overall, the situation of unsold units is still manageable despite the drop in sales performance.
He said first-time buyers declined by 13 per cent in 1H 2016, with 34 per cent in1H 2016 compared to 47 per cent in 2H 2016, while upgraders increased by 6 per cent.
The survey showed residential properties continue to lead new launches despite the volume drop while commercial units experienced a decrease of 30 per cent.
“Half of the residential units launched were priced below RM500,000, similar to what was observed for 2H 2016 in all states, except Malacca,” he said.
He added that the demand for landed properties is back in 1H 2016 with 65 per cent compared to 49 per cent in 2H 2015 while strata property launches were at 35 per cent in 1H 2016 compared to 51 per cent in 2H 2015.