According to the National Property Information Centre, the Malaysian property market improved year on year (y-o-y) in 2021, but overall transactions remained below pre-pandemic levels in 2019. (NAPIC).
NAPIC said in a statement released in conjunction with the release of its Property Market Report 2021 that the year 2021 saw 300,497 property transactions worth RM144.87 billion, up 1.5 percent and 21.7 percent y-o-y, respectively.
According to a previous NAPIC report, Malaysia recorded 295,968 transactions worth RM119.08 million in 2020.
The overall number of transactions in 2021 is still down 8.57 percent from 328,647 in 2019. However, according to data, overall transaction value in 2021 was 2.69 percent more than in 2019, when it was RM141.08 billion.
The property market climate “remains tough” in 2022, according to NAPIC, although momentum is likely to improve as Covid-19 enters its endemic phase, with border reopening and restrictions expected to boost domestic economic activity.
The residential overhang scenario, according to the release, saw volume rise 24.7 percent to 37,000 units worth RM22.79 billion, up 20.5 percent from the previous year.
Despite this, the residential sector had 198,812 transactions worth RM76.9 billion in the year under review, up 3.9 percent in volume and 16.7 percent in value year on year.
Meanwhile, the commercial sector had 22,428 transactions worth RM27.94 billion in 2021, up 10.7% in volume and 43.1 percent in value from the previous year.
Residential, commercial, and industrial sub-sectors all experienced increases in transaction volume of 3.9 percent, 10.7%, and 17.6%, respectively, while agriculture and development land sub-sectors witnessed minor declines of 7.5 percent and 7.4%, respectively.
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PUTRAJAYA (April 4): The Malaysian property market performance improved year-on-year (y-o-y) in 2021 but total transactions remain below pre-pandemic levels recorded in 2019, according to the National Property Information Centre (NAPIC).
The year 2021 saw 300,497 property transactions worth RM144.87 billion recorded, up 1.5% and 21.7% y-o-y respectively, NAPIC said in a statement in conjunction with the release of its Property Market Report 2021.
In 2020, Malaysia recorded 295,968 transactions worth RM119.08 million, according to NAPIC’s past report.
For total transactions, the 2021 tally is still down 8.57% from 328,647 transactions in 2019. However, total transaction value in 2021 has exceeded 2019 levels of RM141.08 billion by 2.69%, records show.
For 2022, NAPIC said the property market environment “remains challenging” but sees momentum to improve on the back of the transition to the endemic phase of Covid-19, with border reopening and the lifting of restrictions expected to further improve domestic economic activities.
“As economy is set to be on the right trajectory, the property market performance is expected to be on a similar track.
“The accommodative policies, continuous government support, well execution of all planned measures outlined in Budget 2022 and the proper implementation of strategies and initiatives under [the] 12th Malaysia Plan is expected to support growth in the property sector,” it said.
Residential overhang rise in 2021
According to the statement, the residential overhang situation saw volume rising 24.7% to 37,000 units worth a total of RM22.79 billion — up 20.5% from the year before.
Selangor retained the highest number and value of overhang in the country with 6,095 units worth RM5.28 billion, accounting for 16.5% and 23.2% of the national total respectively.
“Johor (6,089 units worth RM4.72 billion), Pulau Pinang (5,493 units worth RM3.56 billion) and Kuala Lumpur (3,908 units worth RM3.17 billion) followed suit,” NAPIC said.
Still, the residential sector recorded 198,812 transactions worth RM76.9 billion in the review period, up y-o-y by 3.9% in volume and 16.7% in value.
Meanwhile, the commercial sector saw 22,428 transactions worth RM27.94 billion recorded in 2021, which is a rise of 10.7% in volume and 43.1% in value as compared with 2020.
Across the board, the residential, commercial and industrial sub-sectors saw an increase in transaction volume by 3.9%, 10.7% and 17.6% respectively, while agriculture and development land sub-sectors declined slightly by 7.5% and 7.4% respectively.
“Value of transactions recorded a higher increase for residential, commercial, industrial and development land sub-sectors each at 16.7%, 43.1%, 32.9% and 33.2% [respectively] whereas agriculture recorded a decrease of 5.1%,” NAPIC said.
Source: Edge Prop