The Malaysian housing market is expected to pick up in the first half of 2012 with buyers and developers showing more confidence in the Malaysian market.
A Real Estate and Housing Developers’ Association Malaysia (Rehda) survey found that 79 per cent of the 148 developers who responded were optimistic of the first six months of this year compared with 81 per cent in the second half of 2011. Some 63 per cent said they will launch new projects in the first six months of this year, against 58 per cent in the preceding six months.
Seventy-four per cent of the respondents said they will increase their selling prices by five per cent to 20 per cent this year. The survey also showed that 38 per cent of respondents are facing challenges with building materials, particularly the pricing of bricks, cement and steel bars, and it is having an impact on their cash flow.
Datuk Seri Michael K.C. Yam, president of the Real Estate and Housing Developers’ Association Malaysia (Rehda), outlines what are the major challenges and reasons for increasing prices in the housing market.
“This is due to the high costs of building materials and labour, which continues to be major challenges for the industry. Land cost is also increasing and we have no choice but to pass it on to customers as our margins are eroding,” Yam said.
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