The Valuation and Property Services Department Malaysia (JPPH) says the property market will remain resilient despite the expected near-term downside risks in the country's economy due to the outbreak of Covid-19.
It said Covid-19 may dampen the anticipated economic growth, particularly for the first half of 2020.
However, despite the economic headwinds, JPPH said the property market will remain resilient as the government has been focusing on affordable housing and also addressing the country's property overhang.
JPPH said the close monitoring programmes under the National Housing Policy 2.0 (2018 – 2025) and various incentives introduced to promote homeownership among Malaysians are expected to contain the overhang situation in the coming year.
The department added that Bank Negara Malaysia expects the Malaysian economy to rebound in 2021, in tandem with projected global recovery, the property market is anticipated to move in a similar trajectory.
"Many incentives are given by the government in the effort to cushion the impact on the property market. However, given the challenging market coupled with the downside in consumer and business community confidence, market activity and market absorption are likely to be slow," it said.
Property transactions in 2019 versus 2018
There were a total of 328,647 property transactions worth RM141.4 billion in 2019, up 4.8 per cent in volume and 0.8 per cent in value as compared to 2018, which recorded 313,710 transactions worth RM140.33 billion.
JPPH said there were 209,295 residential transactions worth RM72.42 billion in 2019, up six per cent in volume and 5.3 per cent in value, as compared to the previous year.
JPPH released nine reports yesterday which showed that market activity performance in several sectors had improved marginally.
The sectors that saw an increase in activity were residential (six per cent), commercial (7.2 per cent), industrial (3.8 per cent), and agricultural (two per cent. The land development sub-sector, however, showed a 1.2 per cent decline.
JPPH said there was a higher demand for properties worth RM300,000 and below, which accounted for 61.7 per cent of total transactions, followed by the RM300,000 to RM500,000 range (21.3 per cent) and RM500,000 to RM1 million range (13.3 per cent).
It said properties worth over RM1 million accounted for only 3.7 per cent of the total transactions.
The reports also showed that the volume and value of overhang units reduced by 5.1 per cent and 5.2 per cent respectively to 30,644 units worth RM18.82 billion. The number of unsold under construction units and not constructed units dropped by 10.2 per cent and 15.6 per cent respectively.
Johor recorded the highest number and value of unsold units, with a total of 5,627 units worth RM4.7 billion, accounting for 18.4 per cent and 25 per cent of the national total, followed by Perak, with 5,024 units worth RM1.52 billion. Thirdly was Selangor with 4,687 units worth RM3.75 billion, and fourth Penang with 3,353 units valued at RM2.59 billion.
