Prop­erty launches con­tinue to de­cline: Sur­vey

The Sun (Malaysia) - - SUNBIZ - BY EVA YEONG

PE­TAL­ING JAYA: The num­ber of Real Es­tate and Hous­ing De­vel­op­ers’ As­so­ci­a­tion Malaysia (Re­hda) mem­bers with project launches and the num­ber of units launched has re­duced sig­nif­i­cantly in the first half of 2016 (1H 2016).

Ac­cord­ing to Re­hda’s Prop­erty In­dus­try Sur­vey 1H 2016 & Mar­ket Out­look for 2H 2016, 32% of re­spon­dents had project launches in 1H 2016 com­pared with 42% in 2H 2015 while the num­ber of units launched has dropped to 7,172 in 1H 2016 from 9,938 in 2H 2015.

Re­hda pres­i­dent Datuk Seri Fateh Iskan­dar Mo­hamed Man­sor said this is a wor­ry­ing trend, as the na­tion still faces a short­age of homes.

“Based on the as­sump­tion of four per­sons in ev­ery house­hold, we need 200,000 new homes per year in Kuala Lumpur alone. How­ever in 2015, only some 80,000 res­i­den­tial units were com­pleted na­tion­wide…with lesser sup­ply, house prices will in­crease,” he told re­porters at a brief­ing on the sur­vey re­sults yes­ter­day.

Data from the Na­tional Prop­erty In­for­ma­tion Centre (Napic) re­leased ear­lier in April show that the num­ber of res­i­den­tial units com­pleted has de­clined to 80,850 in 2015 from 107,747 in 2014.

The sales per­for­mance of Re­hda’s sur­vey re­spon­dents have also de­creased from 52% in 2H 2015 to 39% in 1H 2016. Of the 7,172 units launched in 1H 2016, only 2,829 units were sold com­pared with 9,938 units launched and 5,195 units sold in 2H 2015.

Fateh Iskan­dar said the trend in new launches has re­verted back to landed res­i­den­tial units with ma­jor­ity of these landed homes be­ing af­ford­able homes.

The num­ber of landed homes launched rose to 65% in 1H 2016 from 49% in 2H 2015 while strata homes fell to 35% from 51% dur­ing the same pe­riod.

“Launches of landed prop­er­ties were mainly in Gom­bak, Sepang and Cy­ber­jaya in Se­lan­gor, and Ulu Ti­ram and Te­brau in Jo­hor,” he said.

Two- and three-storey ter­race homes were the most pop­u­lar res­i­den­tial type in 1H 2016, over­tak­ing apart­ments and con­do­mini­ums, which were the most pop­u­lar in 2H 2015. The lat­ter came in sec­ond in 1H 2016.

In 1H 2016, 2,345 units of two and three­storey ter­race homes were launched com­pared with 2,509 units launched in 2H 2015. Sales in this cat­e­gory rose slightly to 1,473 units in 1H 2016 from 1,365 units in 2H 2015.

For apart­ments and con­do­mini­ums, the num­ber of launches fell dras­ti­cally to 1,550 units in 1H 2016 from 3,830 units in 2H 2015 while num­ber of units sold fell to 548 from 1,844 dur­ing the same pe­riod.

Mean­while, sin­gle-storey ter­race homes fell out of the top three pop­u­lar res­i­den­tial types, re­placed by flat and low-cost houses in 1H 2016. The num­ber of units launched in the flat and low-cost houses cat­e­gory rose to 1,022 in 1H 2016 from 914 in 2H 2015.

Com­mer­cial units launched de­clined to 233 in 1H 2016 from 331 in 2H 2015, with 116 and 158 units sold re­spec­tively, re­flect­ing in­vestor con­fi­dence and weak con­sumer sen­ti­ment.

Mov­ing for­ward, only 45% of re­spon­dents have planned launches in 2H 2016, com­pris­ing 6,187 landed homes, 7,613 strata homes and 811 com­mer­cial units. The level of con­fi­dence re­mains low, with 68% of re­spon­dents an­tic­i­pat­ing sales per­for­mance below 50%.

The sur­vey was con­ducted among Re­hda mem­bers be­tween Jan­uary and June this year, with a to­tal of 157 re­spon­dents.

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