Better property sales seen in first half
Posted on | August 22, 2007
By THE STAR KUALA LUMPUR: Several property players achieved improved sales for new projects launched in the first half of this year, according to a survey by the Real Estate and Housing Developers’ Association Malaysia (Rehda). Outlook for the second half was also expected to be bullish with more enquiries and sales. However, those surveyed were likely to increase prices by between 10% and 20%, reflecting the rise in material costs and demand for properties driven by buyers in Kuala Lumpur and Selangor, said Rehda deputy president Datuk Michael Yam. Construction costs continued to climb, reaching 30% year-on-year. For the first six months of 2007, 86% of the respondents that launched new projects said sales improved or remained the same compared with only 38.8% year-on-year.
Of the 1,052 Rehda members, 204 companies from Peninsular Malaysia responded to the survey. Yam said 138 respondents reported increased enquiries and sales. “Enquiries from foreigners and locals increased 13% and 70% respectively in the second quarter. “Of these enquiries, 67% were translated into sales for the second quarter, compared with 12% in the first quarter,” he told a media briefing yesterday. With the incentives announced earlier this year to boost the property sector, it was not surprising that developers attributed the exemption of real property gains tax and removal of Foreign Investment Committee approvals and restrictions as factors that contributed to renewed interest in the property market. Yam said other factors cited were spillover from Singapore’s burgeoning economy, Malaysia’s improving economy, availability of loans to foreigners and no restriction to number of units that could be purchased. “However, respondents also cited worries over the inconsistency of government policies and inadequate marketing across borders as factors that could affect the positive impact of such measures,” he added. As at end-June, 135 respondents had 8,064 units unsold. The main reasons for the unsold units were market related factors, units allocated for bumiputras and availability of financing to purchasers.
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