Property Hunter Magazine Property Hunter Magazine Issue 53 - April 2014 | Page 78

/// West Malaysia Property News Majority of REHDA Members Pessimistic or Neutral on Real Estate Neutral and Pessimistic About the Property Industry “It’s not as though the bumiputera units will remain empty. “Eventually they do get sold. “But because there is no official regulation, developers are fearful and hold back these units,” he said, adding that bumiputera units did not appreciate as much as the non-bumiputera ones. REHDA Headquarters Developers are generally expecting a challenging market for 2014 as a result of the cooling measures introduced by the Government in Budget 2014, a survey conducted by the Real Estate and Housing Developers’ Association (REHDA) revealed. The survey, which polled 150 REHDA members from 12 states across peninsular Malaysia, revealed that 87% of the respondents were “pessimistic or neutral” on the outlook for the real estate industry for the first half of 2014. As for the outlook in the second half of 2014, a total of 75% of the respondents were “either neutral or pessimistic” . REHDA president Datuk Seri Michael Yam said the various cooling measures were “gaining traction” and would have an impact on the local property market. “Due to the cooling measures, developers will scale back on their launches. Supply is being held back but the demand is there,” he said at a media briefing yesterday on REHDA’s property industry survey for the second half of 2013. 78 According to REHDA chairman of communications, public relations and publication committee cum national treasurer, Datuk NK Tong, the number of project launches also dropped in the second half of 2013 compared with the previous corresponding period. “Overall cost of doing business had also increased in the second half of last year,” he said, adding that unreleased bumiputera lots remained the number one reason for unsold units during the period. “We’re hoping that during these trying times, the Government will look at the bumiputera quota issue, especially in Malacca, where there were 852 units completed with CFO (certificate of fitness for occupancy) as at Dec 31,” he said. Yam said the quota allocation for bumiputera units in Malacca was at 60%.