More completions recorded in Perlis’ residential sub-sector

PETALING JAYA (May 11): The property market in Perlis recorded a total of 3,927 transactions last year, up 9.4% from 2013, according to the Property Market Report 2014 by the National Property Information Centre (Napic). The overall value of transactions rose 18.2% to RM578.3 million.

The agricultural sub-sector comprised 52.6% of the market, followed by residential (39.7%), commercial (4%), development land (3.1%) and industrial (0.6%) sub-sectors.

The overall primary market saw just 254 units of new launches, a 74.1% drop compared with 979 units a year ago. Sales were down 21.7%.

Semi-detached houses accounted for 51.2% of new launches, comprising 130 units of single, double and three-storey semi-detached houses.

"Development has slowed [in the last two years] because developers on non-Malay reserve land in the state is scarce. Demand for [new] houses is also low. Malays like to stay in kampung areas where they have large parcels of land rather than in a residential enclave," said Henry Butcher Malaysia (Perlis) director Mah Beng Fong.

There were no overhang residential units last year, compared with 49 overhang units worth RM7.5 million in 2013. Meanwhile, there were more completions recorded in the residential sub-sector at 863 units compared with 293 units in 2013.

In the shops sub-sector, the number of overhang units increased to 18 with a value of RM14.85 million, compared with none the previous year. The number of unsold units under construction grew to 99, up 39.4% from 71 units in 2013.

The retail sub-sector continued to record full occupancy. Completions included Bazar MARA Simpang Empat in Kangar with 30,967.77 sq ft of retail space. As of December last year, there were 19 existing complexes (511,318 sq ft) and four in planned supply (233,716.8 sq ft).

In the agricultural sub-sector, prices were generally stable, with increases recorded “in areas served with good accessibility”. In the interiors, paddy class 1 land in several districts witnessed double-digit growth in value, transacting for between RM100,000 and RM128,000 per hectare due to high leasing demand.

Napic expected the Perlis property market to remain vibrant this year due to the development of the Electrified Double Tracking Service (PLBE) and Integrated Transport Terminal.

The PLBE will link Padang Besar to Ipoh and is expected to be operational in 3Q2015. Meanwhile, construction of the Integrated Transport Terminal in Kangar Central will start this year, helping to boost the state economy and its property market.

The proposed Urban Transformation Centre is also expected to improve bus services and transport facilities in Kangar.

Mah said the PLBE and Integrated Transport Terminal will benefit locals but is not expected to drive tourist traffic to Perlis from other states.

However, CH Williams Talhar and Wong Sdn Bhd (Kedah) director Ainuddin Jalaini Ismail expected the PLBE to have a significant impact on the market, especially for tourism-related and industrial properties and the logisitics industry.

He also points out that the two main PLBE stations will be located in the university towns of Arau and Padang Besar, which have a large student population.

Overall, Mah expected the market to stay level this year, with no “significant increase or decrease”. “Good locations near the town centre may see a 5% to 10% increase [in value] while those away from it may see a drop of 5% to 10%." Ainuddin expected growth to slow from last year.

(Source: Napic)