By Yip Wai Fong
PETALING JAYA: The property market in 1H2026 remained relatively steady but soft, with new launches holding at broadly similar levels and sales recording a modest improvement compared with 2H2025, according to the Real Estate and Housing Developers’ Association Malaysia (Rehda) Property Industry Survey for 1H2026 and Market Outlook for 2H 2026 and 1H 2027.
However, 90% of respondents reported an increase in construction costs between March and June 2026, averaging 13%, amid rising fuel prices and ongoing geopolitical uncertainties. In addition, the financing constraint and prevailing economic uncertainty presented a challenging operating environment for the industry that is expected to remain for the rest of the year.
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. 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 2H2025.
“The key message is that launch volume is stable but sales performance remains uneven across property types and price points,” said president Datuk Zaini Yusoff at the media briefing of the survey findings. “Buyers continue to be selective in their purchase decisions.”
A total of 59% of respondents reported having unsold completed residential units, with top reasons being end-financing loan rejection, high property prices and unreleased Bumiputera units. Meanwhile, 77% of the respondents faced financing issues, with 84% of them experiencing end-financing difficulties. In particular, homes priced between RM500,001 and RM700,000 recorded the highest loan rejection rates among all price categories, with the highest rates ranging from 31% to 45%.
Cost pressures remained widespread, with 81% of respondents reporting an increase in the cost of doing business. To mitigate escalating construction costs, respondents reported taking measures such as reducing profit margins, renegotiating contracts with contractors and suppliers, increasing the selling prices, reviewing project specifications and designs and delaying project launches.
“These measures show that cost pressure cannot be absorbed indefinitely without affecting house prices,” Zaini said.
A total of 63% of the respondents said they have no plans to launch their projects in 2H2026, citing unfavourable market conditions, delays in approval and a high number of unsold stocks. However, those who planned to launch said a total of 18,696 units are in the launch pipeline, about 18% higher than in 1H 2026.
“However, anticipated sales performance remains cautious, with most respondents expecting a take-up rate of below 50% over the next three to six months,” said, adding that the launch price range of RM300,001 to RM500,000 remain common in several locations.
Developers remained cautiously optimistic about the domestic economy in 1H 2027, with 20%–28% of respondents expressing optimism about property market trends, business prospects and residential sector growth. Zaini said the cautious optimism is conditioned upon expectations of improvement in geopolitical tensions and overall economic conditions.
Respondents also proposed three measures for the government to alleviate rising construction costs, namely stabilising construction material prices and providing targeted subsidies for key construction materials, reducing compliance costs and development-related charges, and expediting approval processes and streamlining regulatory processes.
“Housing affordability should not be viewed solely from the perspective of property prices. Apart from access to appropriate end financing, the cost of producing and delivering housing must also form part of the affordability equation,” Zaini said.
“It is equally important for the relevant authorities to review statutory, regulatory and other compliance-related costs, particularly those which may no longer be necessary or relevant, as these ultimately add to the cost of housing delivery,” he added.
Also present were Rehda vice president Tiah Oon Ling, immediate past president Datuk Ho Hon Sang, secretary general Datuk Tan Hon Lim and deputy secretary general Carrie Fong.
A total of 181 Rehda members participated in the survey, conducted by Rehda Institute from July to August 2026.
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