From left are Ho, Tong and R Adrina at the recent press conference.

PETALING JAYA: Unreleased bumiputera lots remain as one of the major hurdles in solving the unsold completed units, termed as the residential overhang. The two other major obstacles are end-financing loan rejection and high prices.

The Real Estate and Housing Developers Association (Rehda) Property Industry Survey for 1H 2023 and Market Outlook for 2H 2023 and 1H 2024 revealed this insight. The survey was based on the participation of 148 member developers.

While the number of residential overhangs decreased to 26,872 units worth RM18.31bil in 1Q 2023, the large number of unsold complete units continues to plague the industry.

A total of 53% of respondents reported to have unsold completed residential units at the end of the review period mostly aged between 0 – 12 months (47%) and beyond 36 months (31%). The majority of such residential units were priced above RM1 million at 23%, and those within the ranges of RM400,001 – RM500,000 and RM700,001 – RM800,000 (20% respectively). 

On a more positive note, there has been an increase in activity in the real estate market in Malaysia. The survey results showed both new launches and sales performances recording a hike compared to 2H2022 results. 

Rehda president Datuk NK Tong said a total of 14,392 residential units were launched in 1H2023, indicating a 50% increase from 2H2022. Most of it were apartments or condominiums (7,183 units) followed distantly by 2 to 3-storey terraces and serviced residences (3,729 and 1,223 units respectively).

As for residential sales performance, 11,273 units in total were sold in 1H2023 and 35% of these units were from the new launches. Apartments or condominiums performed the best at 3,749 units, with serviced residences at a close second (3,688 units) followed by 2- to 3-storey terraces (2,040 units). 

“The increase in the number of launches and sales is a positive sign towards a property market that is slowly returning to normalcy. However, true recovery is still out of reach as developers are still struggling with challenges that have yet to be properly addressed such as material price hike, cross-subsidisation as well as high compliance and utility costs,” said Tong.

Also present at the event were Rehda deputy president Datuk Ho Hon Sang and Rehda Kuala Lumpur chairman Ra Adrina Muztaza.