Rehda president NK Tong said this 11% figure represents an almost three-fold jump from the 3% in the preceding half of 2023, especially when these houses are much needed by lower-income groups.

“This could be a sign of unaffordability among the B40 and lower M40 categories.

“This also affects developers, who have used the cross-subsidy method to build these homes,” he said during the launch of the Rehda property industry survey 2H2023 and market outlook 2024, carried out by the Rehda Institute.

Tong said 56% of property developers complained of construction challenges in the second half of last year, noting the high price of building materials.

“This is an ongoing issue that has been exacerbated by the Covid-19 pandemic and is not showing signs of going away soon.

“Ultimately, the increase in building materials means higher construction costs, which will end up hurting the rakyat. We hope this issue is addressed effectively and all industry players will play their roles to ensure buyers are not further affected by the increase,” he said.

However, Tong said property developers were optimistic about the prospects in the first half of 2024, reporting a marginal increase in sales performance.