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In 2021, residential properties made for the majority of property market transactions in Malaysia, accounting for 198,812 transactions for RM76.9 billion.

According to data released by the National Property Information Centre (NAPIC), which is part of the Finance Ministry’s Valuation and Property Services Department, this accounted for 66.2 percent of the total 300,397 property transactions recorded in 2021 and 53.1 percent of the total property value transacted of RM144.87 billion (JPPH).

NAPIC said in a media statement released in conjunction with Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz’s launch of the 2021 Property Market Report on Friday (April 1) that the residential sub-sector saw a 3.9 percent year-on-year (y-o-y) increase in volume and a 16.7 percent increase in value.

Terraced houses continued to be in great demand, accounting for 43 percent of all residential transactions, followed by vacant plots and high-rise units, each accounting for approximately 15 percent of the market.

Over half of the sold residential properties were valued at or below RM300,000.

Property priced below RM300,000 accounted for 55.9% of overall demand, followed by those priced between RM300,001 and RM500,000 (24.6%), RM501,000 to RM1 million (14.8%), and those priced above RM1 million (14.8%). (4.8 percent ).

In terms of house price trends, the Malaysian House Price Index (MHPI) reached 201.5 points in 2021, representing a 0.6 percent increase.

Overall, the Malaysian property market improved in 2021, with total transactions up 1.5 percent year on year to 300,497, and total transaction value up 21.7 percent year on year to RM144.87 billion.

According to NAPIC data, the residential overhang deteriorated in 2021, growing 24.7 percent to 37,000 units valued at RM22.79 billion.

Condominium/apartment units account for around 55 percent (20,505 units) of the total unsold units, followed by terraced houses at 21.3 percent.

Ironically, NAPIC reported that residences priced between RM300,000 and RM1 million made up the majority (31.5%) of unsold units, followed by RM500,001 and RM1 million (30.2%), RM300,001 and RM500,000 (25.7%), and more beyond RM1 million (25.7%). (12.6 percent ).

 

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KAJANG (April 4): Residential properties accounted for the major chunk of property market transactions in Malaysia in 2021, totaling 198,812 transactions worth RM76.9 billion recorded during the year.

This represented 66.2% of the total 300,397 property transactions recorded in 2021 and 53.1% of the total property value transacted of RM144.87 billion, based on data released by the National Property Information Centre (NAPIC), which operates under the Finance Ministry’s Valuation and Property Services Department (JPPH).

In a media statement released in conjunction with the launch of the 2021 Property Market Report by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz on Friday (April 1), NAPIC said the residential sub-sector posted a 3.9% year-on-year (y-o-y) increase in volume and 16.7% in value.

“The improvement was supported by the uptrend recorded in Kuala Lumpur (4.9%), Selangor (10.7%), Pulau Pinang (16.3%) and Perak (3.2%),” it noted.

Meanwhile, Johor recorded a decline in market activity by 2.4%.

Selangor contributed the highest volume and value to the national market share, accounting for 24.5% of the total 48,755 transactions, and 34.4% of the total transaction value of RM26.49 billion.

Kuala Lumpur recorded 11,129 transactions and ranked second highest in value at RM9.69 billion, contributing to 12.6% of the national total.

Demand remained focused on terraced houses, which accounted for 43% of total residential transactions, followed by vacant plots and high-rise units, each with nearly 15% market share.

Notably, over half of the sold residential properties were priced RM300,000 and below.

Demand for properties priced RM300,000 and below accounted for 55.9% of the total, followed by those priced between RM300,001 to RM500,000 (24.6%), RM501,000 to RM1 million (14.8%), and those priced more than RM1 million (4.8%).

On the trend in house prices, the Malaysian House Price Index (MHPI) stood at 201.5 points in 2021, marking a marginal 0.6% growth.

Overall, the Malaysian property market showed improvement in 2021, as total transactions increased 1.5% y-o-y to 300,497, while total transaction value grew 21.7% y-o-y to RM144.87 billion.

 

Developers must conduct feasibility study before execution — Zafrul

The overhang in the residential segment worsened in 2021, rising 24.7% to 37,000 units, valued at a total RM22.79 billion, NAPIC data showed.

“I call on developers and authorities, including the state government, to cooperate and pay attention to the overhang data released by NAPIC. This is very important in ensuring that the project to be developed is in line with market demand, as well as ensuring a reasonable selling price to the public,” said Zafrul.

“(Also,) I would like to call on developers to develop a project based on a feasibility study. Any decision should not be based on speculation on real estate market expectations alone,” he added.

Of the total unsold units, about 55% (20,505 units) are condominium/apartment forms, followed by terraced houses at 21.3%.

Ironically, NAPIC said houses in the affordable price range of RM300,000 and below formed the majority (31.5%) of unsold units, followed by RM500,001 to RM1  million (30.2%), RM300,001 and RM500,000 (25.7%), and more than RM1 million (12.6%).

Source: Edge Prop