Developers and buyers cautious due to uncertain market and loan delays, says association

Tough times are likely to continue in the second half of the year for developers in Johor. — Filepic

THE property outlook in Johor for the second half of this year remains uncertain.

Real Estate and Housing Developers Association (Rehda) Johor branch chairman Wong Boon Lang said its members should be prepared to face a drop in revenue.

He said the pandemic was likely to be around for the next two to five years.

“There are also uncertainties in Malaysia with the third round of the movement control order nationwide until June 7.”

Wong believes that those intending to buy residential properties might put their plans on hold.

“Banks are also becoming more stringent in approving housing loans due to the weak market.”

He said prior to the pandemic, banks would normally take about seven working days to approve and disburse loans but now it would take about a month.

Although there are investors with money to spend, the number is small.

Other challenges facing developers include the increase in steel prices and shortage of workers in the construction industry.

Wong said many Indonesian construction workers had returned to their home country and those here were demanding higher salaries.

There have been hardly any new property launches in Johor, especially Iskandar Malaysia, due to the unfavourable conditions.

“Our members have been very careful about new launches and will likely remain cautious over the next couple of years, ’’ he added.

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