The value of transactions in Malaysia’s real estate market increased by 1.1 percent to RM85.37 billion in the first half of 2023 (1H 2023) from RM84.40 billion in the previous half.
However, the amount of transactions indicated a slight decline of 2.1 percent to 184,140 for 1H 2023 from 188,002 in the same period last year, according to Deputy Finance Minister I Datuk Seri Ahmad Maslan.
“The residential property segment remained the market’s primary driver, accounting for more than 60% of total transaction volume and just under 53 percent of total transaction value.
“It was followed by the agriculture sub-sector with a 19.8 percent share in terms of volume, while in terms of value, the commercial property sub-sector was second with 19.6 percent,” he said in his speech at the launch of the National Property Information Centre’s (Napic) Property Market 1H 2023 Report.
With more over 16,000 newly launched units compared to 33,205 units in the first half of 2022, Ahmad said the new residential property segment experienced cautious attitude throughout the review period, with the majority of new launches taking place in Johor, Selangor, and Penang.
According to him, the residential market’s overhang position has improved throughout the period of market recovery, with the number of unsold units dropping 5.3 percent to 26,286 units worth RM18.3 billion from 27,746 units worth RM18.4 billion in the second half (2H) of 2022.
“Condominium/apartment units made up nearly 58 percent 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 overhang value of more than RM4.0 billion each,” he said.
He did point out that Selangor recorded a 16.5 percent increase over H2 2022 while Johor was able to minimise the overhang volume by 10.3 percent.
In the meantime, Ahmad reported that compared to the same time last year, residential construction activity in the nation saw decreases in completion, starts, and new projected supply of 10.4 percent, 1.2 percent, and 15.8 percent, respectively.
Selangor had the most completions, making up 31.2 percent (8,874 units) of the total for the country. Perak came in second place with 12.8 percent, and Kuala Lumpur came in third with 12.7 percent.
In the meantime, Ahmad stated at a subsequent press conference that the performance of the real estate market is anticipated to improve in the second half of 2023 due to political stability and the introduction of significant national policies like the Madani Economy, National Energy Transition Roadmap, Mid-Term Review of the 12th Malaysia Plan, and New Industrial Master Plan 2030.