Property Market Recovery To Be Supported By Govt Initiatives And COVID-19 Vaccination Programme
The local property market is expected to recover, on the back of the National COVID-19 Immunisation Programme’s acceleration and various initiatives and assistance implemented by the government, said the National Property Information Centre (NAPIC).
“Supported by the implementation of various government initiatives and assistance, the property market is expected to be on the recovery path in line with the gradual economic recovery,” said NAPIC as quoted by The New Straits Times (NST).
NAPIC noted that the property market performed better during the first half of 2021 (H1 2021) compared to H1 2020.
NAPIC’s Malaysia Property Market Report H1 2021 showed that 139,754 transactions worth RM62.01 billion was registered in H1 2021, up 21% in volume and 32.1% in value over the same period last year.
The volume of transactions across the property market’s sub-sectors showed upward movements, reported NST.
The residential and commercial sectors posted year-on-year growth of 22.2% and 28.5%, while the industrial, agriculture and development land sectors posted 29.4%, 13.9% and 21.3% growth, respectively.
Transaction values also increased with residential and commercial witnessing 34.7% and 28.4% growth, while the industrial, agriculture and development land sub-sectors recorded 19.8%, 33.1% and 40.6%, respectively.
“The residential sub-sector led the overall property market, with 65.8% contribution,” said NAPIC.
It is followed by the agriculture sub-sector (18.9%), commercial (7.5%), development land (5.9%) and industrial (1.8%).
The residential sub-sector also took the lead in terms of value as it accounted for 55.6% of total value. The commercial came in second as it contributed 17.6%, followed by industrial (10.4%), agriculture (8.9%) and development land (7.4%).
Specifically, the residential sector saw 92,017 transactions worth RM34.51 billion in H1 2021, up 22.2% in volume and 34.7% in value over the same period last year.
Except for Wilayah Persekutuan Putrajaya, all states registered higher market volume.
The four major states – Kuala Lumpur, Johor, Penang and Selangor – accounted for around 50% of the total residential volume nationwide.
In H1 2021, there were 16,660 newly launched units, down 34% from the 25,227 units launched over the same period in 2020.
The sales performance of new launches improved 24.7% compared to H1 2020.
Selangor had the highest number of newly launched units, accounting for almost 24.7% of the national total at 4,114 units and a sales performance of 26.2%. It is followed by Kuala Lumpur with 3,651 newly launched units or 21.9% of total units launched and sales performance of 3.5%.
NAPIC attributed the better sale performance seen in H1 2021 to various measures rolled out by the government, such as the low overnight policy rate and the reintroduction of the Home Ownership Campaign (HOC), which is now set to end on 31 December 2021.
Other measures include the real property gains tax (RPGT) exemption for disposal of homes up to 31 December 2021, full stamp duty exemption on loan agreements and instruments of transfer for first-time homebuyers up to 31 December 2025, the uplift of 70% margin of financing limit for third housing loan onwards for property valued at RM600,000 and above, and the rent-to-own scheme for 5,000 PR1MA housing units worth more than RM1 billion.
Meanwhile, the residential overhang registered a moderate growth in H1 2021, with 31,112 overhang units worth RM20.09 billion registered during the period under review, up 5.2% in volume and 6.2% in value from H2 2020.
Johor recorded the highest number and value of overhang in the country, accounting for 21.4% in volume (6,661 units) and 25% in value (RM5.02 billion) of the national total.
It is followed by Penang and Selangor as they made up 16.1% (5,005 units; RM3.85 billion) and 12.1% (3,770; RM3.27 billion), respectively.
The commercial sub-sector, on the other hand, registered 10,433 transactions worth RM10.93 billion in H1 2021, higher by 28.5% in volume and 28.4% in value over the same period last year.
Except for Putrajaya and Pahang, all states registered more market activity in H1 2021.
And while five states witnessed contraction in terms of transaction value, the increase in Selangor (40.3%), Kuala Lumpur (47.6%) and Johor (18.3%) led to an overall increase in the sub-sector.
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