The Sun (Malaysia)

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


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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