Property Market Up In 2012 With 427,520 Transactions Worth RM142.84 Billion
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Property Market Up In 2012 With 427,520 Transactions Worth RM142.84 Billion
Apr 19, 2013

PUTRAJAYA: The property market activity in 2012 recorded 427,520 transactions valued at RM142.84 billion, compared with 430,403 transactions worth RM137.83 billion in 2011, according to Malaysia Real Estate Market 2012.

According to the report, the number of transactions decreased by 0.7 per cent while the value of transactions increased by 3.6 per cent.

"As in previous years, the residential sub-sector continues to lead the market activity, contributing 63.8 per cent of the total market," said Finance Ministry Secretary-General Datuk Seri Mohamad Irwan Serigar Abdullah after the launch of the report here on 18 April.

The report said in 2012, a total of 272,669 residential property transactions worth RM67.76 billion were recorded.

"In the fourth quarter of 2012, the All House Price Index increased to 175.3 points from 161.9 points registered in the same period in 2011," the report added.

It said the market segments by price indicated a changing scenario, whereby transactions of the lower price range properties had softened.

Compared with 2011, the transactions of houses within the price range of RM25,000 to RM150,000 declined between 3.5 per cent to 8.3 per cent.

Similarly, transactions of houses in the price bracket of RM200,000 to RM250,000 dipped by 2.5 per cent.

Houses priced between RM250,000 and RM500,000 were the most active, capturing the largest share with 18.2 per cent or 49,515 transactions.

For the past four consecutive years, the demand for high-end units priced above RM500,000 continued to expand, recording 26,484 transactions in 2012 compared with 21,905 transactions in 2011.

By property type, housing units made up the majority with 82.9 per cent of the residential sub-sector's market share, whereby terraced houses remained the most popular, registering 36.4 per cent or 99,381 units of the residential transactions.

The shops sub-sector was the main contributor to the commercial sub-sector, contributing 54.5 per cent of the volume or 22,389 transactions and 49.2 per cent or RM13.67 billion of the value of transactions.

Across the board, all types of shops recorded a downturn in volume of transaction, with one to one-and-a-half storey shops recording the lowest contraction at 2.8 per cent and the highest was pre-war shops at 18.6 per cent.

Two to two-and-a-half storey shops were the most active, controlling 52.3 per cent of the shops' market share.

For industrial property, the industrial sub-sector remained the least active market registering 9,984 transactions worth RM12 billion while the agricultural sub-sector recorded 80,679 transactions valued at RM14.28 billion.

The leisure property sub-sector showed further improvement, with the national average occupancy of one- to five-star hotels improving to 53.6 per cent.

Irwan Siregar said 2013 was expected to be a good year for the property sector as the latest economic indicators showed that the country's growth would be able to overcome the uncertainty in the global economy.

"The implementation of various projects under the Economic Transformation Programme, 2013 Budget and 10th Malaysia Plan, will bring positive impact to the country's property sector.

"The overall performance of the property sector is expected to continue to be led by the residential sub-sector," he said.

Asked on the latest development on civil servants' housing loan, Irwan Siregar said the government was still studying the loan procedures before making the announcement at the end of this year.

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Tags: Malaysia property market, Malaysia Real Estate Market 2012


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