Malaysia’s total property transaction value reached RM85.37 billion in the first half of 2023 (1H2023), with 184,140 transactions recorded, according to the National Property Information Centre’s (Napic) Property Market 1H 2023 Report.
This represents a 1.1 per cent increase in value but a 2.1 per cent decrease in volume compared to the same period last year.
Deputy Finance Minister I Datuk Seri Ahmad Maslan said that the residential property segment continued to drive the market, controlling more than 60 per cent of the total transaction volume and nearly 53 per cent of the total transaction value.
“It was followed by the agriculture sub-sector with a 19.8 per cent share in terms of volume, while in terms of value, the commercial property sub-sector was second with 19.6 per cent,” he said in his speech at the report’s launch today (Sept 14).
Ahmad Maslan said that the property market would be stable in 1H2023, despite a number of headwinds, such as inflationary pressures.
He said that his ministry is cautiously optimistic about the sector’s prospects for the second half of this year.
“The property sector is expected to continue its recovery momentum in line with economic growth. Initiatives envisaged in Budget 2023 will also help support property market activities, in addition to accommodating policies and the implementation of initiatives under the 12th Malaysia Plan,” he said.
According to the Napic report, residential property saw 114,973 transactions worth RM44.78 billion in 1H2023, contracting slightly by 1.0 per cent in volume and 1.8 per cent in value from a year ago.
Residential properties in Kuala Lumpur, Penang, Johor, and Selangor accounted for about half of the total volume.
Selangor had the highest volume and value contribution to the national market share, accounting for 26.1 per cent of volume (4,590 transactions) and 26.5 per cent of value (RM4.44 billion).
The commercial property segment saw 17,602 transactions, worth a total of RM16.76 billion, up by 16 per cent in volume and 19.5 per cent in value.
Meanwhile, the number of new residential property launches dipped by 50.2 per cent to over 16,000 units during the period, up from 33,205 units a year ago.
Johor recorded the highest number of new launches, with nearly 25.9 per cent (4,286 units) of the total, with sales performance at 34.5 per cent.
This was followed by Selangor (2,978 units, or 18 per cent share), with sales performance at 38.6 per cent, and Penang (1,632 units, or 9.9 per cent share), with sales performance at 64 per cent.
The residential overhang situation improved during the market recovery period, with unsold units falling 5.3 per cent to 26,286 units valued at RM18.3 billion from 27,746 units valued at RM18.4 billion in the second half (2H) of 2022.
Condominium/apartment units accounted for nearly 58 per cent of the residential overhang, with nearly half costing more than RM500,000 per unit.
With 4,717 units, Johor maintained the highest residential property overhang, followed by Selangor with 4,307 units. Each of these states had an overhang value of more than RM4 billion.
