Media Release on REHDA Property Industry Survey for 1H 2026 and Market Outlook for 2H
2026 and 1H 2027
Developers Remain Cautious Amid Rising Costs
The property market remained relatively steady but soft in 1H2026 with new launches holding at broadly similar levels and sales recording a modest improvement compared with the preceding six months. However, rising business and construction costs, financing constraint and prevailing economic uncertainties continue to weigh on developers’ operating and investment decisions.
These were among the key findings of the REHDA Property Industry Survey for 1H 2026 and market outlook for 2H 2026 and 1H 202, presented today at Wisma REHDA. The survey, conducted by REHDA Institute drew responses from 181 REHDA members across Peninsular Malaysia to assess industry performance in 1H 2026 as well as the outlook for the subsequent 12 months.
Launches Remained Steady, Sales Improve Marginally
According to the survey, a total of 54 respondents launched projects during the period under review, comprising 15,834 units, almost unchanged from the 15, 841 units recorded in 2H 2025. Of the total units launched, 53% were priced between RM300,001 – RM500,000, mostly located in Perak, Pahang and Negeri Sembilan. Sales performance improved modestly, with 5,260 units sold, representing a 3.2% increase from 5,098 units in 2H 2025. The overall take-up rate consequently edged up to 33.2%, compared with 32.2% in the preceding six months.
Apartments and condominiums accounted for the highest number of units sold at 3,032 units, followed by serviced residences at 1,114 units and 2-3 storey terrace trailing further behind at 610 units.
End-Financing Remains a Key Challenge
A total of 59% respondents reported having unsold completed residential units as of 30 June 2026. Respondents cited end-financing loan rejection, high property prices and unreleased Bumiputera units as the three main reasons for completed units remaining unsold.
Among the main factors contributing to housing loan rejection were purchasers’ income eligibility, lower margins of financing offered by financial institutions and applicants’ adverse credit histories, suggesting the continuing importance of access to appropriate end-financing in supporting home ownership.
Cost Pressures Continue to Affect Operations
Cost pressures remained widespread, with 81% of respondents reporting an increase in the cost of doing business, of whom, 35% experienced increases of between 3% and 6%.
Meanwhile, 63% encountered construction-related challenges during 1H 2026, particularly involving building materials and labor. The impact of the wider economic environment was also evident, where 62% of respondents indicated that the economic conditions had affected their businesses during the period. Cost-cutting measures taken in response included freezing recruitment, reducing employee benefits and retrenchment, as well as rescheduling planned launches, delaying project due to poor demand and reducing the scale of launches.
Looking ahead, 63% of respondents expect their companies to freeze hiring between July 2026 and June 2027. Nonetheless, 56% indicated plans to expand their land banks during the same period, suggesting that while developers remained cautious in their immediate operations, investment in longer-term development opportunities continues.
Respondents also reported an average 13% increase in construction costs between March and June 2026, amid rising fuel prices and ongoing geopolitical uncertainties.
Developers Remain Selective on New Launches
37% of respondents indicated plans to launch in 2H 2026, involving 18,696 units, majority of of which will comprise strata units. Projects planned in Pahang, Melaka, Negeri Sembilan and Kedah will predominantly comprise units priced between RM300,001 – RM500,000. For the 63% of respondents without plans for new launches, they have cited unfavourable market condition, delays in approval and higher number of unsold stocks as the top three reasons
Generally, respondents were neutral and remained cautiously optimistic on the domestic economy with sentiments showing signs of improvement towards 1H 2027.
REHDA Malaysia President Datuk Zaini Yusoff said the findings indicate that market activity remained relatively steady but continued to be soft, with developers operating against a challenging backdrop. “The consistency in launch numbers and modest improvement in sales suggest that demand remains present in the market but the survey findings clearly show that developers continue to face considerable pressure from rising cost, financing constraints and uncertainties in the wider economic environment. Of particular concerns are the continuing challenges surrounding end-financing and affordability. Housing affordability should not be viewed solely from the perspective of property prices. Apart from access to appropriate endfinancing, the cost of producing and delivering housing must also form part of the affordability equation.
Therefore, continued collaboration among the Government, financial institutions and the industry is important to ensure that Malaysians who are financially capable of owning a home are able to do so. At the same time, it is equally important for the relevant authorities to review statutory, regulatory and other compliance-related costs, particularly those which may no longer necessary or relevant, as these ultimately add to the cost of housing delivery,” concluded Datuk Zaini.
REHDA will continue to encourage our members to uphold our nation-building role of providing quality, affordable homes for the rakyat in a timely and sustainable manner.
— end of media release —
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