Increased optimism for 1H2024, despite neutral outlook for the rest of 2H2023 by developers — Rehda

• Having emerged from the pandemic a year ago with everything continuing to normalise and getting better, and with elections out of the way, developers are optimistic about the next year.

PETALING JAYA (Aug 18): The property market is gradually stabilising, but property developers hold a neutral view for 2H2023, with more optimism for 1H2024, according to recent findings of the Real Estate and Housing Developers' Association (Rehda) Property Industry Survey.

During the media briefing at Wisma Rehda in Kelana Jaya yesterday, Rehda president Datuk NK Tong expressed optimism for the coming year. Having emerged from the pandemic a year ago with everything continuing to normalise and getting better, and with elections out of the way, developers are optimistic about the next year.

“Now what we can see is that the pandemic is behind us. So, this allows us to be a bit more optimistic. The elections are over, both federal and state. There were no surprises, I think there's less destruction.

“Everyone is now focused on moving forward and hopefully, the states, whichever side the government ended on, are all focused on the growth of their state. And I think all that works well for the rakyat, for the industry, and for the general economy,” said Tong.

Ra Adrina Mustaza, a Rehda exco member added that property developers in Kuala Lumpur are actually waiting for the KL structure plan to be gazetted, and hopefully, for the KL local plan to be gazetted soon after.

“The news that it might be gazetted by the end of this year gives confidence for the property developers to hopefully launch and sell next year,” said Ra.

Tong concurred with Ra’s view, as it relates to one of the business considerations where 59% of the developers are looking to acquire more land.

Out of 148 respondents who participated in the survey, 47% opted not to launch their projects in 2H2023. Almost half of them attributed their decisions to unfavourable market conditions, followed by business constraints (35%) and lack of suitable product or landbank location (27%).

Additionally, respondents reported more than 10% annual increase in average price for cement, concrete and sand as at June 30, 2023. Among them, 87% observed a greater rise in building materials prices compared to previous years.

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