Outdated compliance costs should be reviewed to help reduce housing cost — Rehda

KUALA LUMPUR (Sept 23): Statutory costs that may no longer be applicable should be reviewed, as such costs contribute to increasing house prices, said the Real Estate and Housing Developers’ Association Malaysia (Rehda).

“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," said Rehda president Datuk Zaini Yusoff (pictured) in a media briefing unveiling the “Rehda Property Industry Survey 1H2026 and Market Outlook for 2H2026 and 1H2027” today at Wisma Rehda here. 

He stated that affordability should be assessed beyond pricing to include access to financing and the cost of housing production and delivery.

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Demand remains present, as reflected in consistent launch numbers and improved sales, but he noted ongoing concerns over end-financing and affordability, with developers facing pressures from costs, financing and economic uncertainty.

An average 13% rise in construction costs was reported between March and June, mainly caused by higher fuel prices and geopolitical uncertainties.

“Therefore, continued collaboration among the government, financial institutions and the industry is important to ensure that Malaysians who are financially capable of owning a home are able to do so,” Zaini stressed.

Developers resorting to staff cut to control rising cost

In the latest survey, 81% of respondents reported higher costs of doing business, with 35% of them noting an increase of 3%–6%. Up to 63% reported construction-related difficulties, mainly concerning building materials and labour, while 62% indicated that economic conditions had an impact on operations.

Measures adopted in response included freezing recruitment, adjusting employee benefits and retrenchment. For the period of July 2026–June 2027, up to 63% of respondents expect to maintain a closed door on hiring.

Weak demand also led developers to rescheduling launches, postponing projects and reducing launch scale.

Only 37% of respondents intend to launch in 2H2026, comprising 18,696 units of mainly strata properties. Planned projects in Pahang, Melaka, Negeri Sembilan and Kedah will largely be in the RM300,001–RM500,000 segment.

Among the 63% with no launch plans, the reasons cited were market conditions, approval delays and existing unsold inventory.

However, 56% plan to increase land bank holdings.

Respondents expressed a neutral view on the domestic economy, with a cautiously optimistic sentiment emerging towards 1H2027.

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