KUALA LUMPUR, March 20 — Malaysia’s property market is expected to strengthen in the second half of 2025 (2H 2025) and is on track to achieve RM180 billion in sales this year, said Real Estate and Housing Developers’ Association (Rehda) Malaysia.
President Datuk Ho Hon Sang said the sales target is achievable, considering last year’s robust performance.
Malaysia recorded the highest property transactions in 2024 in over a decade, rising by 18 per cent to RM223.2 billion versus RM196.8 billion in 2023.
“The achievement in 2024 spurred fellow developers’ enthusiasm. I believe they can do better in 2025,” he said at the Rehda Property Industry Survey 2H 2025 and 2025 market outlook media briefing here, today.
Last Monday, Housing and Local Government Minister Nga Kor Ming reportedly said his ministry is targeting to generate RM180 billion in property sales across all sub-sectors this year.
Ho said the 127 member developers who participated in the Rehda Property Industry Sentiment Survey 2H 2024 were optimistic about the property market, with 40 per cent reporting improved sales in 2H 2024.
Meanwhile, 177 respondents from the Property Industry Survey 2H 2024 and Market Outlook for 2025 reported a seven per cent fall in launched units totalling 13,611 units; sales declined to 3,802 units from 6,907 units in 1H 2024.
He said 56 per cent of the respondents planned to launch their products in the 1H 2025, while the remaining 44 per cent cited reasons to delay launches, driven by delays in obtaining approval, unfavourable market conditions, business constraints, a higher number of unsold stock, and a shortage of land bank.
In terms of future launches, he said the respondents have forecast 11,828 strata units and 9,805 landed units; 55 per cent of the respondents anticipate a 25 to 50 per cent sales performance within a six-month period.
The survey also indicated that 41 per cent of respondents have unsold completed residential units as of Dec 31, 2024, with 43 per cent priced between RM400,001 and RM500,000; end-financing loan rejection and low demand or interest were noted as the top reasons.
Ho said the survey revealed that buyers’ income, inadequate financial documentation and adverse credit history were the reasons for the loan rejection.
A majority of developers reported a rise of three to six per cent in the overall cost of doing business in 2H 2024 while 56 per cent of respondents faced construction challenges.
Respondents were impacted by high prices, and inconsistent and supply shortages of building materials while labour challenges include high wages, supply shortages and lengthy approval. — Bernama
