Property Market in 2018: Soft Or Not ?
The Valuation And Property Service Department (JPPH) has just released the Property Market Report 2018. The report broadly states that the market in 2018 has gradually stabilised, with an increase of 0.6% in transaction volume and 0.3% in transaction value compared to 2017.
Here are some of the major highlights obtained from the report:
- There are a total of 66,060 new launches recorded in 2018, 14.9% less than the 77,570 units in 2017.
- Kuala Lumpur and Selangor displayed a significant drop in new property launches, 56.1% and 9.9% less than the previous year respectively.
- Johor seems to be a developer’s hotspot, with a 17.3% increase in property launches in 2018 compared to 2017.
- High rise properties formed the bulk of new launches at 36.8%.
- The Malaysian House Price Index (MHPI) stood at 193.3 points, which is 3.1 points higher than 2017.
- The commercial subsector is doing exceptionally well, with an increase of 8.0% in volume and 16.0% in value as compared to 2017.
- Shops recorded an increase of 11.2% in overhang properties, with a total of 5,055 units valued at RM4.08 billion. Unsold under construction properties reported a similar uptrend, with an increase of 22.8% with a total of 7,233 units.
- The retail subsector in shopping complexes remains stable, with a slight decrease in average occupancy rate at 79.3% as compared to 81.3% in 2017.
- For Purpose-Built Office, Kuala Lumpur reported the highest negative take-up rate of -38,632 square metres of unused space.
According to Sr Gs Md Badrul Hisham Bin Awang, Director of NAPIC, the transaction volume and value of residential properties are expected to increase in early 2019, in reference to the existing data they have on hand. The spike in numbers can be attributed to the Home Ownership Campaign which will last until 30th June 2019.
“The effects of the Home Ownership Campaign can only be seen in the second half of 2019. It is hard to comment on the outlook and performance for this year, as the campaign has not officially ended yet. Developers have already started announcing their sales figures obtained from the campaign, but we have to wait for the official, finalized figures,” Badrul commented.
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