Rehda Survey: Over 60% of Members Delay H2 2026 Residential Launches
A Real Estate and Housing Developers' Association Malaysia (Rehda) survey indicates that 63% of its members have no plans to launch residential projects in the second half of 2026, citing unfavourable market conditions, approval delays, and increased unsold units.
What happened
According to a Real Estate and Housing Developers' Association Malaysia (Rehda) Property Industry Survey for H1 2026 and Market Outlook for H2 2026 and H1 2027, presented on 2026-09-23, approximately 63% (114 out of 181 respondents) of its members in Peninsular Malaysia have no plans to launch residential projects in the second half of 2026. The primary reasons cited for these delays include unfavourable market conditions, prolonged approval processes, and an increase in unsold units. This reflects a cautious approach by developers to avoid adding to supply when demand is perceived to be soft.
Despite the majority holding back, 37% of respondents still plan to launch 18696 units in H2 2026, comprising 13203 stratified units and 5493 landed units. This planned pipeline is about 18% higher than the 15834 units launched in H1 2026. However, sales expectations remain guarded, with 33 out of 60 respondents anticipating a take-up rate below 25% within three months. Rehda president Datuk Zaini Yusoff highlighted that developers' launch decisions are closely tied to market conditions and project viability, demonstrating a responsive supply pipeline.
Agent insight
The decision by a significant portion of developers to delay new launches, particularly given the pessimistic sales outlook for H2 2026, signals important implications for potential buyers and agents. This could lead to a reduced supply of new residential properties in the short term, potentially limiting choices for buyers seeking specific types or locations. However, it might also help stabilize existing inventory and could lead to a healthier supply-demand balance in the future. Agents should focus on understanding existing inventory and identifying developers who are still proceeding with launches to cater to diverse buyer needs.
Financing issues remain a critical barrier to completed sales, with 84% of respondents reporting end-financing problems, primarily due to buyer income ineligibility, adverse credit history, and lower financing margins. For agents, this means pre-qualifying buyers' financial standing and loan eligibility is paramount, especially for properties in the RM500001 to RM700000 price bracket, which recorded the highest loan rejection rates. Furthermore, 33% of unsold units were priced above RM1 million, indicating greater challenges in the higher-end market segment.
While the outlook for H2 2026 is cautious, the market sentiment for H1 2027 shows a slight improvement, with respondents generally neutral rather than broadly optimistic. An easing of external uncertainties, such as global geopolitical conditions, could lead to a market turnaround. Agents should emphasize to buyers that demand for housing persists, particularly from owner-occupiers, with 70% of purchasers aged between 29 and 44 years old. This indicates that the market is primarily supported by local owner-occupier demand, rather than speculative investment.
Checks before follow-up
Verify actual launch plans and timelines of developers in specific areas.
• Assess potential buyers' financial readiness and loan eligibility, especially for properties in the RM500001 to RM700000 range.
• Understand the inventory of unsold units for specific projects or areas, particularly those priced above RM1 million.
• Monitor global geopolitical developments and domestic economic indicators for potential shifts in market sentiment.
• Inquire about any specific incentives or products developers might offer for owner-occupier buyers.
Who to follow up with
Owner-occupier buyers seeking existing or soon-to-be-completed properties
• Investors looking to understand market supply trends
• Real estate agents needing current market insights for clients
What to watch next
Rehda's H1 2027 Property Industry Survey results
• Government announcements on housing policies or incentives
• Changes in bank lending policies and interest rates
Buyer follow-up message
Given the cautious outlook from developers for H2 2026 sales, are you open to considering existing or completed properties in the market? We could compare the pros and cons of new versus existing homes to see what best fits your needs and financial situation.
FAQ
Why are developers delaying new project launches?
According to the Rehda survey, developers are delaying new project launches primarily due to unfavourable market conditions, approval delays, and an increase in unsold units. This indicates a more cautious strategy by developers after assessing market demand and project viability.
Does this mean property prices will decrease in the future?
The article does not directly predict a decrease in property prices. The delay in launches might lead to reduced new supply in the short term, which could help stabilize existing inventory. However, conservative sales expectations and financing issues persist, and market movement will depend on various factors including consumer purchasing power, economic environment, and geopolitical situations.
An agent’s follow-up message
Hi! A recent Rehda survey shows many developers are delaying new launches for H2 2026 due to market conditions and approval delays. However, some are still planning new units. What areas or property types are you currently interested in? What's your budget and primary purpose for buying? We can explore the available options together.