News & Articles Subdued property mart in 1H 2015
Subdued property mart in 1H 2015
11 Sep 2015
KUALA LUMPUR: The gloomy outlook for the property sector is expected to persist as sales registered negatively in the first half of this year.
Topping the list as the biggest challenge is the end-financing rejection rate going up from an average of 29 per cent in 2014 to 35 per cent this year.
The figure, as collated from the Real Estate and Housing Developers' Association Malaysia (Rehda) property survey 2015, showed an increase taken from 125 respondents from 12 states across Peninsular Malaysia.
Its president Datuk Seri Fateh Iskandar said the issue is alarming given the fact that most first-time home buyers were unable to secure a home due to lower margin of financing and stricter lending rules.
As a result, sales performance have been more subdued for the past 18 months whereby value of properties showcased and sold have also gone down significantly.
"Strata units have dominated launches as opposed to landed units mainly in Penang, Selangor and Kuala Lumpur with half of the units launched were priced below RM500,000," he said during the survey briefing held earlier today.
Unsold units have increased from 64 per cent to 78 per cent in the first half of this year with indication that the situation is still manageable.
Topping the list as the biggest challenge is the end-financing rejection rate going up from an average of 29 per cent in 2014 to 35 per cent this year.
The figure, as collated from the Real Estate and Housing Developers' Association Malaysia (Rehda) property survey 2015, showed an increase taken from 125 respondents from 12 states across Peninsular Malaysia.
Its president Datuk Seri Fateh Iskandar said the issue is alarming given the fact that most first-time home buyers were unable to secure a home due to lower margin of financing and stricter lending rules.
As a result, sales performance have been more subdued for the past 18 months whereby value of properties showcased and sold have also gone down significantly.
"Strata units have dominated launches as opposed to landed units mainly in Penang, Selangor and Kuala Lumpur with half of the units launched were priced below RM500,000," he said during the survey briefing held earlier today.
Unsold units have increased from 64 per cent to 78 per cent in the first half of this year with indication that the situation is still manageable.
Source: nst.com.my