IT will take between six and 24 months for the property market to fully recover from the effects of the lockdowns brought about by the Covid-19 epidemic, a survey by the real estate and housing developers’ association (Rehda) found.

The Property Industry Survey for the first half of 2021 was conducted from August 16 to 31 and involved 180 respondents from the property sector.

“About 83% of the respondents agreed that the market would fully recover between six and 24 months,” Rehda president Heng Choon Soam said at a zoom media briefing to present the findings of the survey.

“There is increased optimism for the business and economic outlook for the property industry in the first half of 2022.”

The survey also found that only 36% of respondents planned to launch their projects in the second half of 2021 as the first half of the year was considered a bust due to the lockdown measures.

“The top three reasons given not to launch in 2021 were unfavourable market conditions (40%), projects delayed and delayed approvals from authorities (18%) and high number of unsold stock (17%).

“76% also said that their projects were delayed by at least 147 days due to the lockdowns.”

In the first half of 2021, a total of 11,601 units were launched where 98%, or 11,422 units, were residential units.

Of the units launched in the first half of 2021, 3,955 units were apartments or condominiums, followed by 3,142 units of two- to three-storey terrace type houses and 1,156 serviced apartments. The units ranged in price between RM250,001 and RM500,000.

In terms of sales, in the first half of 2021, sales decreased to 39% compared to the second half of 2020, which recorded 45% sales.

Under the home ownership campaign, which started in May 2020 to May 2021 and further extended to December 31, Rehda said 75,503 units of property were sold under the programme.

“Until September 30, for the period 16 months, the value of the property sold before discount was RM56.96 billion, after discount was RM47.38 billion.

“This shows that developers were giving an average of 17% discount, more than the 10% set by the government.”

Of the 75,503 units sold, 32% were serviced apartments while 29% were double-storey terraces.

“The highest number of sales was in Selangor, which accounted for RM21 billion, followed by Kuala Lumpur (RM11.6 billion) and Johor (RM5.4 billion).

In terms of the buyers’ profiles, 98% are locals, 47% of whom are first-time buyers. – October 21, 2021.