PETALING JAYA: The Real Estate and Housing Developers’ Association Malaysia (Rehda) will look at introducing a digital marketing transformation initiative (DMTI), a digital marketing certification programme, in 2022 with several partners to assist property developers and help steer the whole property marketing and sales ecosystem towards digitalisation, said Rehda Malaysia vice-president Datuk NK Tong.
He shed light on key issues faced by the real estate and property development industry in Malaysia following months of full lockdown.
“The key issues include end-financing challenges relating to financial institutions in Malaysia, slow and lack of digital technology adoption by property developers in Malaysia, and negative buyer and market sentiment and pressure from external market forces,” Tong said at a joint press conference today by Rehda Malaysia and Rehda Institute on the key findings from a survey and focus group discussions entitled “Rehda Institute Marketing & Sales Research Report for the Property Industry”.
Tong said Rehda proposed and recommended solutions to the key issues including improving access to home financing for home buyers, DMTI by Rehda Institute, and government role towards continued economic recovery.
“To achieve (home financing for home buyers as outlined in Budget 2022 and the 12th Malaysian Plan) and to improve home ownership for the rakyat during and post-pandemic, we urge the financial institutions to expand their step-up financing and other alternative financings that the government has mentioned in the 12MP and Budget 2022. The government has to accelerate rent-to-own schemes for the rakyat,“ he said.
Tong said the survey detailed current implications on the real estate and property development industry in Malaysia, particularly in the current aspects of marketing and sales of properties in Malaysia.
“We will upskill and improve the digital marketing capability of the property developers especially the marketing and sales team in 2022. We hope more incentives will be made available by the government and relevant agencies for the digitalisation initiatives of companies including SME which consist of small and medium-sized developers,“ he said.
On another matter, Tong said the costs of building materials and commodities have been going up.
On this, Rehda Malaysia president Datuk Soam Heng Choon said: “Construction cost has gone up by 13% to 20%. Assuming that total construction cost is between 50% and 60% of the gross development value, which is the selling price, if there is a 20% increase in the cost, it will translate to at least 10% increase in the selling price.
“A property sold at RM300,000 now has to be sold at RM330,000. Ultimately the buyers have to suffer as when the developers have no ability to absorb the cost anymore, it will be passed on to the buyers.”
He added that that the government has been in talks with various stakeholders, including the supply chain, manufacturers, suppliers, to address these issues.
The survey and focus group discussion conducted on Nov 16 was led by Tong from Rehda Institute in collaboration with Universiti Tunku Abdul Rahman and Stratos Pinnacle.
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