Hous­ing over­hang up 1.5% in first-half 2019

OHouse prices in­crease at mod­er­ate pace from a year ago, but down slightly on quar­terly ba­sis: Re­port

The Sun (Malaysia) - - SPEAK UP -

PETALING JAYA: Malaysia’s res­i­den­tial prop­erty over­hang rose 1.5% to 32,810 units in firsthalf 2019 (1H19) com­pared with 32,200 units in 2H18, ac­cord­ing to Na­tional Prop­erty In­for­ma­tion Cen­tre’s (Napic) First-Half Prop­erty Mar­ket Re­port.

The to­tal value of the res­i­den­tial prop­erty over­hang stood at RM19.76 bil­lion, dom­i­nated by res­i­den­tial units priced from RM200,001 to RM300,000 with 7,328 units (22.3%), fol­lowed by units priced at RM300,001 to RM400,001 with 5,731 (17.5%).

Un­sold res­i­den­tial units priced above RM1 mil­lion ac­counted for 12.8% with 4,213 units.

The Malaysian House Price In­dex con­tin­ued to in­crease at a mod­er­ate pace, stand­ing at 194.8 points in 2Q19, up 0.9% on an an­nual ba­sis. How­ever, on a quar­terly ba­sis, it slipped by 0.6%.

In the first half of the year, the prop­erty mar­ket saw 160,172 trans­ac­tions val­ued at RM68.3 bil­lion, a 6.9% in­crease in vol­ume and a 0.8% in­crease in value from 149,862 trans­ac­tions worth RM67.74 bil­lion recorded in 1H18.

There were 99,922 trans­ac­tions worth RM34.65 bil­lion for the res­i­den­tial prop­erty seg­ment for 1H19, an in­crease of 6.1% in vol­ume and a 9.5% hike in value.

For the pe­riod un­der re­view, all states recorded higher mar­ket vol­umes for res­i­den­tial prop­erty ex­cept Labuan and Perak.

The in­crease was mainly con­trib­uted by Kuala Lumpur (+7%), Se­lan­gor (+5.8%), Jo­hor (+1.2%) and Pe­nang (+0.5%).

Napic said new launches in the pri­mary mar­ket for 1H19 con­tracted 49.4% to 23,591 units from 46,617 units pre­vi­ously.

“Sales per­for­mance was mod­er­ate at 30.9%, bet­ter than 1H18 (20.1%) and 2H18 (29.2%).”

How­ever, the re­port shows that 12,960 trans­ac­tions worth RM12.53 bil­lion were reg­is­tered for the com­mer­cial prop­erty seg­ment, a 20.4% growth in vol­ume but a 20.8% drop in value.

The shop sub-sec­tor recorded 6,922 trans­ac­tions worth RM5.8 bil­lion, dom­i­nat­ing 53.4% of com­mer­cial prop­erty trans­ac­tion and 46.3% of the to­tal value. It was a growth of 25.1% in vol­ume and a 32.7% in value against the 5,530 trans­ac­tions worth RM4.4 bil­lion re­ported in 1H18.

How­ever, in 1H19, the over­hang for the sub-sec­tor con­tin­ued to in­crease with 5,760 units val­ued at RM4.98 bil­lion, rep­re­sent­ing a 13.9% gain in vol­ume and a 22% jump in value from the pre­ced­ing half year.

On the sup­ply front, con­struc­tion ac­tiv­ity con­tin­ued to be slow as in­di­cated by the con­rac­tion in com­ple­tions, starts and new planned sup­ply, de­clin­ing 25.6%, 6.8% and 60.8%, re­spec­tively.

For the re­tail sub-sec­tor, an over­all oc­cu­pancy rate of 79.7% was recorded against 79.3% in 2H 18, driven by higher take-up in Jo­hor, Kuala Lumpur and Se­lan­gor.

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