KUALA LUMPUR: The Malaysian property market saw a decline of 10.9% in volume for the year 2013, with 381,130 transactions done compared to 427,520 in 2012.
However, it saw a 6.7% increase in value, with RM152.37bil done for 2013 compared to RM142.84bil a year ago, according to the Property Market Report.
It said the residential sub-sector continued to spearhead the property market activities, taking up 64.6% share.
“Prevailing low interest rate environment, with the base lending rate of commercial banks sustaining at 6.53%, and weighted average lending rate to 5.4% continued to support the domestic property market,” it said.
It added the Bank Negara Malaysia’s pre-emptive strategies to preserve household sector resilience through application of 70% loan-to-value ratio on third housing loans onwards as well as guidelines on responsible funding, had gradually impacted the housing market.
It noted the overhand performance continued to improve as the number of residential overhang dropped further to 13,547 units in 2013.
On the contrary, the overhand value increased from RM4.74bil to RM4.8bil in 2014.
On the supply side, completion of residential, shop and industrial sub-sectors improved with 8.3%, 18.2% and 15.8% each.
Construction activities for residential, shop and industrial sub-sectors continued to grow with more starts and new planned supply.