PETALING JAYA: EcoFirst Consolidated Bhd has priced the majority of its new launches under RM500,000 per unit as it aims to tap into the shortages of affordable homes in Malaysia.
CEO Datuk Tiong Kwing Hee (pix) opined that the property sector outlook for 2022 remains challenging amidst the adverse impact from the Covid-19 pandemic situation in Malaysia.
“I believe the residential market will gradually recover in the H2’22, but prices will remain flattish despite the rising raw material prices. However, if the economic recovery picks up faster than anticipated, there will be pent-up demand in the property sector,” he said in a statement.
Tiong noted that Malaysia continues to see a demand and supply mismatch in the property market, and the property overhang situation in the country is something that property developers have been grappling with even prior to the pandemic.
Observing the local market, the majority of unsold residential units in Malaysia are priced between RM500,000 to RM1.5 million while unsold residential properties priced below RM500,000 are usually those located in outskirts areas. This sums up the property overhang situation in the country, in spite of an affordable residential homes shortage.
According to the Housing Bureau Statistics, there is an affordable home shortage of one million units particularly in the Klang Valley.
Tiong highlighted that EcoFirst is aware of the changing market trends and landscape and it is flexible to the current market needs and demand.
To this end, the group has engaged independent market study to gauge the demand-supply dynamics of the location, products and branding before embarking on new development projects.
For FY2022, the group is cautiously optimistic over its prospect as it focuses on developing high-value land in strategic areas with attractive pricing and development features tailored to the requirement of the mass-market segment.
“We’re also cautiously optimistic about a gradual recovery in the property development as Malaysia moves out from a pandemic to an endemic stage,” said Tiong.