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Property Market Transactions Rise to RM85.4 billion in 1H 2023

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KAJANG, Sept 14 (Bernama) – Malaysia’s real estate market recorded a stable performance in the first half of 2023 (1H 2023), with the value of transactions increasing by 1.1 per cent to RM85.37 billion from RM84.40 billion in 1H 2022.

Deputy Finance Minister I Datuk Seri Ahmad Maslan said the volume of transactions, however, showed a marginal decrease of 2.1 per cent to 184,140 for 1H 2023 versus 188,002 in the corresponding period last year.

“The residential property segment continued to drive the market, controlling more than 60 per cent of the total transaction volume and nearly 53 per cent of the total transaction value.

“It was followed by the agriculture sub-sector with a 19.8 per cent share in terms of volume, while in terms of value, the commercial property sub-sector was second with 19.6 per cent,” he said in his speech at the launch of the National Property Information Centres (Napic) Property Market 1H 2023 Report today.

READ: PropertyGuru Malaysia Property Market Report Q3 2023

Ahmad said the new residential property segment saw cautious sentiment during the period under review, recording more than 16,000 newly launched units compared with 33,205 units in 1H 2022 with the majority of new launches being in Johor, Selangor and Penang.

He said the overhang situation in the residential segment improved during the market recovery period with unsold units falling 5.3 per cent to 26,286 units valued at RM18.3 billion from 27,746 units worth RM18.4 billion in the second half (2H) of 2022.

“Condominium/apartment units made up nearly 58 per cent of the residential overhang, while in terms of price range, almost half were priced more than RM500,000 per unit.

“Johor continued to have the highest residential property overhang with 4,717 units, followed by Selangor with 4,307 units. These states recorded overhang value of more than RM4.0 billion each,” he said.

However, he noted that Johor managed to reduce the overhang volume by 10.3 per cent while Selangor registered a 16.5 per cent rise compared to H2 2022.

Meanwhile, Ahmad said that residential construction activity in the country recorded a decrease in completion, starts and new planned supply, down by 10.4 per cent, 1.2 per cent and 15.8 per cent respectively compared to the same period last year.

Selangor contributed the highest number of completions, accounting for 31.2 per cent (8,874 units) of the national total, followed by Perak (12.8 per cent) and Kuala Lumpur (12.7 per cent).

Meanwhile, during a media conference later, Ahmad said the property market’s performance is expected to improve in 2H 2023 driven by political stability and the launch of major national policies such as the Madani Economy, National Energy Transition Roadmap, Mid-Term Review of the 12th Malaysia Plan, and New Industrial Master Plan 2030.

“These policies will have a positive economic impact and contribute to the growth of the property sector,” he said.

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