PETALING JAYA: The Real Estate and Housing Developers’ Association Malaysia (Rehda) has reported a 45% drop in property sales in the second half of last year (H2 2024).

Rehda president Ho Hon Sang said the sales performance of 177 respondents in the association’s Property Industry Survey H2 2024 experienced a decline from 6,907 units in H1 2024 to 3,802 units in H2 2024.

“Forty-one per cent of the respondents said they have unsold completed residential units, with 43% of 19,564 units priced within the RM400,001 to RM500,000 bracket,” he said in a media briefing at Rehda’s headquarters here today.

Ho said the top three types of unsold completed units were serviced residences (55%), single-storey terraces (16%), and condominiums (8%), with the main reasons being end-financing loan rejections and low demand or interest.

In terms of end-financing loan rejections, he said the survey reported the ineligibility of buyers’ income, as well as inadequate financial documentation and poor credit history.

The survey also found that the majority of property developers reported an increase of between 3% and 6% in the overall cost of doing business in H2 2024.

Meanwhile, 56% of respondents faced construction challenges, including high material prices, supply shortages, and inconsistent supply, as well as labour issues like high wages, manpower shortages, and lengthy approval processes.

For 2025, Ho said survey respondents were more neutral about the property market in the first half of the year but showed increased optimism for the second half.

“This is because the government has introduced more initiatives to spur the economy, like the Johor-Singapore Special Economic Zone,” he said.