Spread the news

KUALA LUMPUR: The property market is expected to be on the recovery path in line with the gradual economic recovery, supported by the implementation of various government initiatives and assistance, said the National Property Information Centre (Napic).

It said the property market performance recorded a significant increase in the first half of 2021 (1H 2021) as compared to the same period last year.

In the Malaysia Property Market Report for 1H 2021 released yesterday, it said a total of 139,754 transactions worth RM62.01 billion were recorded, showing an increase of 21.0% in volume and 32.1% in value compared to the same period last year.

Volume of transactions across the sub-sectors showed upward movements it said with residential, commercial, industrial, agriculture and development land sub-sectors recorded year-on-year growths of 22.2%, 28.5%, 29.4%, 13.9% and 21.3% respectively.

In terms of value of transactions, it also moved in tandem with residential, commercial, industrial, agriculture and development land sub-sectors recorded growths of 34.7%, 28.4%, 19.8%, 33.1% and 40.6% respectively, said Napic.

As for residential property, it said there were 92,017 transactions worth RM34.51 billion recorded in the review period, an increased by 22.2 % in volume and 34.7% in value year-on-year whereby performance across the states had improved in the review period.

“All states recorded higher market volume except for Wilayah Persekutuan (WP) Putrajaya. The four major states namely Kuala Lumpur, Selangor, Johor and Pulau Pinang formed about 50% of the total national residential volume,” it shared.

In the primary market, the report showed there were 16,660 units launched, down by 34% against 25,227 units (revised) in 1H 2020 while sales performance for new launches recorded at 24.7% better compared to 1H 2020 (revised 12.9%).

“The improvement in sales performance probably attributed to various measures by the government such as incentives of the Home Ownership Campaign, reintroduced from June 1,2020 to Dec 31, 2021 and low Overnight Policy Rate,” it noted.

NAPIC said Selangor recorded the highest number of new launches in the country, capturing nearly 24.7% (4,114 units) of the national total with sales performance at 26.2% followed by Kuala Lumpur with 3,651 units or 21.9% share with sales performance at 3.5%.

By property type, it said terraced houses dominated the new launches with single storey (2,624 units) and 2-3 storey (5,455 units) together contributed 48.5% of the total units, followed by condominium or apartment units at 41.4% share (6,893 units).

According to the report, the residential overhang exhibited a moderated growth with a total of 31,112 overhang units worth RM20.09 billion was recorded, showing an increase of 5.2% and 6.2% in volume and value respectively against the preceding half.

Construction activity, Napic noted had recorded an increase in completion, starts and new planned supply, each up by 8.7%, 35.3% and 36% respectively compared to the same period last year.

However, the Malaysian House Price Index (MHPI) saw an unprecedented negative growth in Q2 2021 after a series of slow price growth since 2018 whereby it stood at 197.9 points, down by 1.2% year-on-year while on quarterly movements MHPI saw a decline of 1.6%.

For commercial property, NAPIC stated that there were 10,433 transactions worth RM10.93 billion recorded, up by 28.5% in volume and 28.4% in value compared to the same period last year and all states recorded more market activity in the review period except for WP Putrajaya and Pahang.

Selangor contributed the highest volume and value to the national market share, with 26.3 per in volume (2,741 transactions) and 30.8% in value (RM3.37 billion), followed by Kuala Lumpur with 13.0% in volume (1,359 transactions) and 28.2% in value (RM3.08 billion).

The report showed serviced apartment sub-sector recorded 1,912 transactions worth RM1.21 billion, formed 18.3% of the commercial property transactions volume and 11.0% of the value.

On the other hand the serviced apartment sub-sector recorded 24,064 overhang units with a value of RM20.41 billion, indicating a marginal increase of 1.9% in volume, but value declined by 10.2% compared to the preceding half.

Meanwhile, the unsold under construction recorded 42,358 units, increased by 20.1%, it showed.

“The construction activities saw a mixed trend with completions decreased by 8.3% to 4,030 units, starts increased by 89.6% to 21,278 units and new planned supply up by 33.7% to 7,339 units against similar half last year,” it said.

On the performance of shopping complex, it said the segment moderated in H1 2021, with the national occupancy rate saw a slight decline of 76.6% as compared to 1H 2020 78.6%.

Kuala Lumpur and Selangor recorded 81.6% and 78.8% occupancy rate respectively, whereas Johor and Pulau Pinang managed to secure an average occupancy of 73.4% and 72.2% respectively, it said.

The report also showed the sole completion recorded in 1H 2021 was contributed by the extension of Setia City Mall, Shah Alam (21,363 sqm), bringing the total space for shopping complex nationwide to 16.93 million sqm.

There were another 47 complexes 1.94 million sqm in the incoming supply and with another 10 complexes of 0.34 million sqm in the planned supply, it said.

As of the purpose-built office, it said the overall performance decreased to 78.5%, slightly lower than 1H 2020 (80.6%) with the occupancy rate for private office buildings declined further to 71.7%, down from 74.3% recorded in 1H 2020.

Pulau Pinang secured a higher occupancy rate at 85.3% while Kuala Lumpur, Selangor and Johor recorded lower than the national level at 73.8%, 68.4%, and 72.75%, respectively, the report said.

“Eight new purpose-built offices with office spaces totalling 505,842 sqm were completed in the review period, extending the existing market supply to 23.84 million sq m from 2,581 buildings.

“Kuala Lumpur was the lead contributor for office space with a share of 40.7% or 9.7 million sq m in the existing market, 54% or 1.09 million sq m in incoming supply and 52.9% or 0.17 million sq m in planned supply,” it added. – Bernama

Click to rate this post!
[Total: 0 Average: 0]

Spread the news
MI Contest
Previous articleCamillo Doregos is Powering the Rise of Africa’s Global Stars: Afrobeats the Business Vol. 1
Next article3-year-old baby allegedly kidnapped by his uncle over debt found alive inside forest


Please enter your comment!
Please enter your name here