Active Selected States : Volume and Value of Property Transaction 2018 | |||||||
State | Selangor (1) | Johor (2) | Sarawak (3) | Pahang (4) | Pulau Pinang (5) | Kuala Lumpur (6) | Sabah (7) |
| Volume (Units) | 61,266 | 41,653 | 23,662 | 17,614 | 17,087 | 15,488 | 15,488 |
| Value (RM) | 41.70 billion | 19.32 billion | 6.65 billion | 5.08 billion | 10.20 billion | 23.30 billion | 23.30 billion |
NAPIC’s recently launched Malaysian Property Market 2018 report shows improvements in last year’s property market – A telltale sign of a stabilising 2019.
April 30, Kajang – A media briefing on the Malaysian Property market report published by the Valuation and Property Services Department (JPPH) was held today. The property market in 2018 has gradually improved and seen to have recorded a marginal increase. The property sector had observed an increase of 0.6% in volume and 0.3% in value compared to 2017, with a total of 313,710 transactions worth RM140.33 billion in 2018. The residential property continued to support the overall property sector with 62.9% market share, followed by agriculture property with a 21.5% share.
Residential property market
*Information in the table above is sourced from NAPIC
There were 197,385 transactions worth RM68.75 billion recorded in 2018, which shows an increase of 1.4% in volume and 0.4% in value. States performance is generally mixed. Major states namely Kuala Lumpur, Johor and Pulau Pinang recorded an increase of 6.8%, 7.8% and 3.0% respectively in market activity. Selangor, despite a decline, recorded a marginal decrease of 0.4%.
The number of new launches in 2018 recorded 66,040 units, contracted by 14.9% as compared to 77,570 units in 2017. Major states namely Kuala Lumpur and Selangor showed a decrease of 56.1% and 9.9% respectively. Johor recorded an increase of 17.3% as compared to 2017. Sales performance was moderate at 34.6% across the board. Condominiums and apartments formed the bulk of new launches at 36.8%, followed by two to three storey terrace houses which recorded 29.0%.
Malaysia : Overhang and Unsold Units by Sub-sector | |||||||||
Property Sub-sector (Units) | Overhang | Unsold | |||||||
| Under Construction | Not Constructed | ||||||||
| 2017 | 2018 | Y-o-Y (%) | 2017 | 2018 | Y-o-Y (%) | 2017 | 2018 | Y-o-Y (%) | |
| Residential | 24,738 | 32,313 | 30.6 | 61,882 | 80,894 | 30.7 | 12,626 | 19,865 | 57.3 |
| Shops | 4,546 | 5,055 | 11.2 | 5,889 | 7,233 | 22.8 | 332 | 385 | 16.0 |
| SOHO | 563 | 1,343 | 138.5 | 3,448 | 4,965 | 44.0 | 307 | 884 | 187.9 |
| Serviced Apartments | 6,364 | 11,371 | 78.7 | 45,955 | 37,285 | -18.9 | 5,185 | 12,864 | 148.1 |
| Industry | 999 | 1,183 | 18.4 | 916 | 812 | -11.4 | 124 | 176 | 41.9 |
*Information in the table above is sourced from NAPIC
The residential overhang situation continued to increase to 32,313 units valued at RM19.86 billion, which shows an increase of 30.6% in volume and 27.0% in value (24,738 units worth RM15.64 billion in 2017).
High rise residential houses (condominiums and apartments) formed the bulk of the overhang units, representing 43.4% (14,031 units) of the total. Most overhang cases are concentrated in Perak (2,905 units; 20.7%) and Kuala Lumpur (2,692 units; 19.2%).
Selected States : Residential Stock 2018 | |||||||
State | Selangor (1) | Johor (2) | Pulau Pinang (3) | Kuala Lumpur (4) | Pahang (5) | Sarawak (6) | Sabah (7) |
| Existing (units) | 811,350 | 811,350 | 507,827 | 478,258 | 273,463 | 254,721 | 214,836 |
| Completion (units) | 17,303 | 11,792 | 6,530 | 13,871 | 5,732 | 6,944 | 4,521 |
| Start (units) | 19,865 | 16,628 | 13,844 | 14,933 | 6,980 | 7,418 | 6,487 |
*Information in the table above is sourced from NAPIC
Construction activities show a downtrend performance. Completed units reduced by 0.7% (93,547 units) as compared to 2017 (94,198 units) while properties that have begun construction (starts) recorded a decrease as well by 8.6% (122,065 units).
House prices continued to record a steady increase. The Malaysian House Price Index (MHPI) stood at 193.3 points, up by 3.1 points against 2017. The two major states moved in tandem, led by Johor and followed by Selangor, each saw its house price increased by 5.6% and 3.3% respectively. Terrace House Price Index remained the highest among the lot.
MHPI: Index Point, Average House Price (RM) and Yearly Changes | |||||||
Types of Property/ Year | Index Point | Average Price (RM) | Y-o-Y % | ||||
2010 |
2017 |
2018 |
2010 |
2017 |
2018 | ||
| Terrace | 100 | 191.7 | 204.1 | 188,207 | 355,648 | 378,474 | 6.4 |
| High Rise | 100 | 198.5 | 196.2 | 173,713 | 342,769 | 338,698 | -1.2 |
| Detach | 100 | 175.4 | 172.3 | 381,512 | 670,559 | 658,668 | -1.8 |
| Semi-Detach | 100 | 172.0 | 175.4 | 378,294 | 644,624 | 657,239 | 2.0 |
| ALL HOUSE | 100 | 187.6 | 193.3 | 217,857 | 404,643 | 416,993 | 3.1 |
*Information in the table above is sourced from NAPIC
2019 outlook
Property market activity in 2019 is expected to stabilize judging from the increase in volume and value of the total transaction at the end of 2018.
As Malaysia embraces Industrial Revolution 4.0 and Digital Economy, a different arena is expected for the industrial property sub-sector to play a significant role in generating investments and employment opportunities.
The property overhang issue needs to be thoroughly handled and a holistic measure needs to be in place. Overhang does not necessarily mean oversupplied. There are other contributing factors such as mismatch, affordability & costs of living. It is about finding the right location, the right price, right type to cater for the right demand.
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