Malaysia’s property sales surge 23.8% y-o-y to RM105b in 1H2024, says Napic

• This compares to the RM85.37 billion recorded in the same period last year, Napic said in a statement in conjunction with the release of its Property Market Report for the First Half of 2024 (1H2024).

KAJANG (Sept 9): Malaysia’s property transaction value soared to RM105.65 billion in the first half of 2024 (1H2024), marking a 23.8% year-on-year (y-o-y) increase — the highest in five years — according to the National Property Information Centre (Napic).

This compares to the RM85.37 billion recorded in the same period last year, Napic said in a statement in conjunction with the release of its Property Market Report for the First Half of 2024 (1H2024).

All property sub-sectors recorded growth, with the residential segment’s transaction value rising 10.4% to RM49.43 billion, followed by a 41.5% increase for commercial to RM23.71 billion, a 23.4% rise for industrial to RM13.50 billion, a 37.8% increase for agricultural to RM9.73 billion, and a 59.3% jump for development land and others to RM9.28 billion. 

In terms of transaction volume, a total of 198,806 properties were sold in 1H2024, representing an 8% increase from 184,140 units in 1H2023.

The residential segment contributed an increase of 6.1% to 121,964 units, followed by commercial (up 22.4% to 21,537 units), industrial (up 2.3% to 3,822 units), agricultural (up 6.5% to 38,827 units) and development land (up 12.1% to 12,756 units). 

Speaking at the event here, Deputy Finance Minister Lim Hui Ying said the stronger property market was driven by several supportive government policies. 

This includes the offer of up to RM10 billion in guarantees under the Housing Credit Guarantee Scheme (SJKP), the steady overnight policy rate that has been kept at 3.0%, and fiscal policies such as the extension of the stamp duty exemption period on property transfer documents for first-time homebuyers.

The Malaysian House Price Index (MHPI), which tracks home price trends, stood at 218.7 points, with an average price per unit of RM471,918 in 1H2024, reflecting a moderate annual growth of 0.9%.

“All states witnessed moderate positive growth, except for WP (Wilayah Persekutuan, or Federal Territory of) Kuala Lumpur, which charted a decline of 0.8%. By property type, semi-detached, terrace, and detached remained stable, with positive growth rates of 2.6%, 1.1% and 0.5% respectively, while high-rise apartments showed a marginal decline,” Napic said.

Overhang units continue to decline in 1H2024; Perak tops in terms of unsold units

Napic also said that the number of completed but unsold residential properties fell to 22,642 units, worth RM14.24 billion in 1H2024, continuing the decline from 25,816 units worth RM17.68 billion in 2H2023.

Perak recorded the highest number of overhang residential units at 4,161 units, followed by Johor at 3,219 units, and Kuala Lumpur at 3,051 units. Most of these unsold units were priced below RM300,000.

As for unsold but incomplete residential units, which include properties still under construction or yet to begin construction, a total of 67,944 units were recorded in 1H2024.

Of these, 57,934 units were still under construction, with 53.86% or 12,943 units priced at RM300,000 or below. Meanwhile, there were 10,010 unsold units that had yet to begin construction, with 52.82% or 2,388 units priced below RM300,000.

Perak also topped the list for unsold, incomplete residential units at 11,376 units, followed by Kuala Lumpur with 9,837 units, and Selangor with 8,534 units.

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