Res­i­den­tial prop­erty glut grew in 2017 but prices con­tin­ued to rise

The Sun (Malaysia) - - MEDIA & MARKETING - BY EVA YEONG

KAJANG: The over­hang in the res­i­den­tial prop­erty mar­ket may have wors­ened last year, in­creas­ing by 67.2%, but it has not worked to bring house prices down, with the Malaysian House Price In­dex in­creas­ing by 6.5% year-onyear to 187.4 points, driven mainly by ter­race houses.

Ac­cord­ing to the Val­u­a­tion and Prop­erty Ser­vices Depart­ment (JPPH), the vol­ume of res­i­den­tial over­hang grew by 67.2% to 24,738 units while value grew even higher at 82.8% to RM15.64 bil­lion in 2017.

In terms of res­i­den­tial over­hang, Jo­hor was the high­est, ac­count­ing for 17.7% (4,376 units) of the to­tal na­tional over­hang, fol­lowed by Pe­nang at 15.8% (3,916 units) and Kedah at 15.3% (3,783 units).

Un­sold units were mainly stratati­tled homes priced above RM500,000 in Jo­hor Baru and Pe­nang, while un­sold units in Kedah were two- and three­storey homes go­ing for be­tween RM300,000 and RM400,000, throw­ing a spot­light on the is­sue of hous­ing un­af­ford­abil­ity.

In Kedah specif­i­cally, the JJHH’s Na­tional Prop­erty In­for­ma­tion Cen­tre (Napic) high­lighted that the num­ber of un­sold unit was three­fold more than that in 2016, while prices were five times more than that seen in 2016.

De­spite the high num­ber of un­sold units, hous­ing starts in­creased by 14.4% to 133,592 units while new planned sup­ply rose by 24.5% to 132,731 units.

“As at year-end, there were more than 5.4 mil­lion ex­ist­ing res­i­den­tial units, with an­other 480,892 units in the in­com­ing sup­ply and 448,199 units in the planned sup­ply,” it said in its Prop­erty Mar­ket Re­port 2017.

JPPH launched the Un­sold Prop­erty En­quiry Sys­tem Malaysia yes­ter­day in an ef­fort to ad­dress the in­creased over­hang in the prop­erty mar­ket.

JPPH di­rec­tor-gen­eral Nordin Da­harom said the sys­tem, which is avail­able to every­one, al­lows users to search for un­sold prop­er­ties na­tion­wide ac­cord­ing to lo­ca­tion, sta­tus and type of prop­erty.

“The search re­sults will dis­play the num­ber of un­sold units ac­cord­ing to lo­cal coun­cil zones and value,” he said.

Over­all, the prop­erty sec­tor recorded 311,824 transactions worth RM139.84 bil­lion last year, re­flect­ing a 2.7% drop in vol­ume and 3.8% de­cline in value.

Trans­ac­tion vol­ume has been on the down­trend since 2012, with only a 0.8% in­crease in 2014 while trans­ac­tion value has been on the de­cline since 2014.

Res­i­den­tial prop­er­ties con­trib­uted 62.4% of the to­tal transactions recorded last year, fol­lowed by agri­cul­ture prop­er­ties at 22.5%. The num­ber of res­i­den­tial units sold fell 4.1% to 194,684 transactions but value rose 4.4% to RM68.47 bil­lion.

By price range, de­mand con­tin­ued to fo­cus on units cost­ing RM200,000 and be­low, which ac­counted for nearly 45% of the res­i­den­tial mar­ket vol­ume.

In the pri­mary res­i­den­tial mar­ket, prop­erty de­vel­op­ers launched 77,570 new units, higher than the 52,713 units launched in 2016 while sales per­for­mance was mod­er­ate at 32.6% com­pared with 31.4% in 2016.

The prop­erty mar­ket is ex­pected to sta­bilise and “will be bet­ter” this year, based on the num­ber of transactions in Jan­uary and Fe­bru­ary, Nordin told re­porters at the launch of the re­port.

From left: Nordin, Care­taker Deputy Fi­nance Min­is­ter II Datuk Lee Chee Leong and Coun­try Real Es­tate In­for­ma­tion Cen­tre di­rec­tor Md Badrul Hisham Awang at the launch yes­ter­day.

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