Property transactions climb to RM85.4bil in 1H23

PETALING JAYA: Malaysia’s real estate market recorded a stable performance in the first half of 2023 (1H23), with the value of transactions increasing by 1.1% to RM85.37bil from RM84.40bil in 1H22.

Deputy Finance Minister I Datuk Seri Ahmad Maslan said the volume of transactions, however, showed a marginal decrease of 2.1% to 184,140 for 1H23 versus 188,002 in the corresponding period last year.

“The residential property segment continued to drive the market, controlling more than 60% of the total transaction volume and nearly 53% of the total transaction value.

“It was followed by the agriculture sub-sector with a 19.8% share in terms of volume, while in terms of value, the commercial property sub-sector was second with 19.6%,” he said in his speech at the launch of the National Property Information Centre’s Property Market 1H23 Report in Kajang yesterday.

Ahmad said the new residential property segment saw cautious sentiment during the period under review, recording more than 16,000 newly launched units compared with 33,205 units in 1H22, with the majority of new launches being located in Johor, Selangor and Penang.

He said the overhang situation in the residential segment improved during the market recovery period with unsold units falling 5.3% to 26,286 units valued at RM18.3bil from 27,746 units worth RM18.4bil in 2H22.

“Condominium/apartment units made up nearly 58% of the residential overhang, while in terms of price range, almost half were priced more than RM500,000 per unit.

“Johor continued to have the highest residential property overhang with 4,717 units, followed by Selangor with 4,307 units. These states recorded an overhang value of more than RM4bil each,” he said.

However, he noted that Johor managed to reduce the overhang volume by 10.3% while Selangor registered a 16.5% rise compared to 2H22.

Meanwhile, Ahmad said that residential construction activity in the country recorded a decrease in completion, starts and new planned supply, down by 10.4%, 1.2% and 15.8% respectively compared to the same period last year.

Selangor contributed the highest number of completions, accounting for 31.2% (8,874 units) of the national total, followed by Perak (12.8%) and Kuala Lumpur (12.7%).

Meanwhile, during a media conference later, Ahmad said the property market’s performance is expected to improve in 2H23 driven by political stability and the launch of major national policies such as the Madani Economy, National Energy Transition Roadmap, Mid-Term Review of the 12th Malaysia Plan and the New Industrial Master Plan 2030.

“These policies will have a positive economic impact and contribute to the growth of the property sector,” he said. — BK