PETALING JAYA: Developers are confident of hitting the RM3bil sales target for the six-month Home Ownership Campaign (HOC), which will end on June 30.
Real Estate and Housing Developers’ Association chairman Datuk Soam Heng Choon said: “I don’t want to speculate but I am sure we can hit that RM3bil sales target.
“We are talking about a period of six months, not the three-day HOC event between March 1 and 3.”
Soam said since that event, there has been a marked improvement in sentiment and perception among developers who saw more visitors in their sales galleries.
Several states have yet to hold their campaigns and once this has been done, further interest would be generated, he said.
“The feeling among developers is that if they have more visitors at their sales galleries, there is the chance they will be able to close a sale.”
Soam was responding to an article in StarBiz on Monday quoting property consultants that the RM3bil sales target was on the optimistic side. He was speaking at a briefing on “Property Industry Survey 2H 2019 and Market Outlook 1H2019 and 2H 2019”.
Given the various waivers on stamp duties by the government, freebies and rebates from the developers themselves until June 30, the general perception among developers is that the second half of 2019 could see a further improvement in sentiment.
“Developers are optimistic about the first half of 2019. The level of optimism is expected to increase further in the following six months,” he said, quoting a survey of 121 respondents conducted in the second half of 2018.
Soam acknowledged that loan rejection continued to be the main obstacle for prospective buyers.
“They were ineligible due to their income. They were offered a lower margin of financing when they want a higher margin and they have adverse credit history.
“Many young buyers were rejected because they did not pay their National Higher Education Fund loans. They have to clear or re-schedule their loans first.
“We support Bank Negara’s policy of not giving new loans to people who do not qualify but we also would like banks and lending institutions to consider a potential buyer’s other sources of income,” he said.
Soam said developers also do not want buyers who are not credit worthy. “We do not want a systemic failure in our financing system,” he said, adding that there have been questions whether the campaign would be extended until year-end.
According to the 2018 survey, between July and December 2018, about 70% of buyers were owner occupiers, with most of them being first-time buyers and upgraders. Only 1% were foreigners.
A total of 11,964 properties, residential and commercial, were launched. Of this, 11,463 or 96% were residential units.
Fifty percent of the respondents had launches, compared to 40% in the first half of 2018. Despite higher number of developers holding launches, sales dropped by 8%.
More than a third of the residential units launched were priced between RM250,001 and RM500,000, with most of them located in Kelantan and Negri Sembilan.
A quarter of the units, or 26%, were priced between RM500,001 and RM700,000, with most of them located in Penang, Johor, Kuala Lumpur and Selangor.