Building sector on the path of recovery, says Napic


NAPIC reported the property market performance recorded a significant increase in the first half (H1) of 2021 as compared to the same period last year.

PETALING JAYA: The property market is expected to be on a recovery path in line with the gradual economic recovery, supported by the implementation of various government initiatives and assistance, said the National Property Information Centre (Napic).

It said the property market performance recorded a significant increase in the first half (H1) of 2021 as compared to the same period last year.

In the Malaysia Property Market Report for H1 of 2021, it said a total of 139,754 transactions worth RM62.01bil were recorded, showing an increase of 21% in volume and 32.1% in value compared to the same period last year.

Volume of transactions across the sub-sectors showed upward movements, it said, with the residential, commercial, industrial, agriculture and development land sub-sectors recording year-on-year (y-o-y) growth rates of 22.2%, 28.5%, 29.4%, 13.9% and 21.3% respectively.

In terms of the value of transactions, it also moved in tandem with the residential, commercial, industrial, agriculture and development land sub-sectors by recording growths of 34.7%, 28.4%, 19.8%, 33.1% and 40.6% respectively, said Napic.

Affordable housing units under construction in Penang - FilepicAffordable housing units under construction in Penang - Filepic

As for residential property, it said there were 92,017 transactions worth RM34.51bil recorded in the review period, an increase of 22.2% in volume and 34.7% in value y-o-y, whereby the performance across the states had improved in the review period.

“All states recorded higher market volume except for Putrajaya. The four major states, namely, Kuala Lumpur, Selangor, Johor and Penang formed about 50% of the total national residential volume,” it shared.

In the primary market, the report showed there were 16,660 units launched, down by 34% against 25,227 units (revised) in H1 of 2020, while the sales performance for new launches was recorded at a 24.7% improvement compared to H1 of 2020 (revised 12.9%).

“The improvement in sales performance probably attributed to various measures by the government such as incentives of the Home Ownership Campaign, reintroduced from June 1, 2020 to Dec 31, 2021 and the low overnight policy rate,” it noted.

Napic said Selangor recorded the highest number of new launches in the country, capturing nearly 24.7% (4,114 units) of the national total with sales performance at 26.2%, followed by Kuala Lumpur with 3,651 units or a 21.9% share with sales performance at 3.5%.

By property type, it said terraced houses dominated new launches, with single-storey (2,624 units) and double- and triple-storey (5,455 units) types in combination contributing 48.5% of the total units, followed by condominium or apartment units with a 41.4% share (6,893 units).

According to the report, the residential overhang exhibited a moderated growth with a total of 31,112 overhang units worth RM20.09bil being recorded, showing an increase of 5.2% and 6.2% in volume and value respectively against the preceding half.

However, the Malaysian House Price Index (MHPI) saw unprecedented negative growth in the second quarter (Q2) of 2021, after a series of slow price growths since 2018 whereby it stood at 197.9 points, down 1.2% y-o-y while on quarterly movements, MHPI saw a decline of 1.6%.

For commercial property, Napic stated that there were 10,433 transactions worth RM10.93bil recorded, up 28.5% in volume and 28.4% in value compared to the same period last year.

All states recorded more market activity in the review period except for Putrajaya and Pahang.

The report showed the serviced apartment sub-sector recorded 1,912 transactions worth RM1.21bil, forming 18.3% of the commercial property transaction volume and 11% of the value. ― Bernama

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