The sluggish property market could recover in six to nine months when the supply of materials stabilises and the people adapt to the higher cost of living.

“In 2009, the cloud will be clearer. When there is certainty in fuel price and there is regular cement and steel supply at market-driven prices, I think people can better plan their lives,” said Datuk Michael K C Yam, chairman of the Real Estate and Housing Developers Association (Rehda).

Property buyers are cautious after Malaysia hiked petrol price by 41 per cent in June. Some buyers have problems getting financing as banks become stricter in approving loans due to a tough economic outlook.

Construction and operational costs rose 30 per cent and 20 per cent respectively, causing some 20 per cent hike in prices of new launches. Rehda’s property survey for the first half of this year revealed that the rising costs of building material and fuel have also affected developers’ production delivery.

“Most members reported having difficulties in getting consistent supply of building materials besides their continuously rising price, especially steel and cement,” said Yam.

Out of the 135 respondents for its survey - comprising housing and property development companies - more than half said they are launching new projects for the second half of this year. As for new launches in the first half of the year, the amount was almost half compared to the same period last year.

The average number of units to be launched per developer for the second half of this year is 152 units, less than the 169 units in the same period last year. According to Yam, terrace houses remained the most popular at 50.4 per cent, mostly in the RM100,000 to RM250,000 price range, followed by apartments and condominiums at 15.6 per cent.

On sales performance in the second half, 26 respondents reported static performance, 14 percent worsening sales and 13 percent better performance. "Only Johor and Perak recorded better sales performance nationwide," Yam said, attributing current economic situation, household disposable income and pricing issues as the reasons.