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 declined from 6,907 units in H1 2024 to 3,802 units in H2 2024.

He told a media briefing at Rehda’s headquarters here today that apartments and condominiums proved to be the most sold properties within the period under review, followed by serviced residences and two/three storey terraces.

“We believe the lower numbers reported is due to member developers completing their launches in early 2024, and we expect to see an increase in the next survey,” he said.

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.

The said the survey found that the ineligibility of buyers’ income, inadequate financial documentation and poor credit history were the main reasons that housing loan applications were rejected.

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.