Napic: Weak property market performance in Sabah in 2015

KUALA LUMPUR (April 19): Sabah’s property market showed a downtrend in 2015 with the decrease of all sub-sectors and fewer new properties launched.

According to Property Market Report 2015 by National Property Information Centre (Napic), Sabah recorded 7,824 transactions worth RM3.89 billion in 2015, indicating a decrease of 12.2% on volume and 10.8% in value from a year ago.

“Market activity across all sub-sectors showed a downtrend. The residential sub-sector was down by 11.4%, commercial 16.8%, industrial 21.4%, agricultural 12.4% and development land 5.9%,”the report showed.

However, prices of residential property in Sabah were generally stable with a slight increase in 2015.

The All House Price Index for the state stood at 319.5 points, up by 5.5% from 302.7 points in 4Q2015. The average all house price was RM459,494, up from RM435,396 in 4Q2014.

Apart from that, the residential overhang units also grew – in 2015, there were 652 units of overhang properties worth RM177.5 million, up by 86.8% in volume and 53.9% in value.

Despite the weak performance of the residential sub-sector in Sabah, the office sub-sector continued to firm up in the review period.

The overall occupancy rate improved to 90.7%, slightly higher than 89.9% in 2014.

At the end of 2015, there were 93 existing offices, while three more office buildings are scheduled to be completed soon.

According to the report, the property market in Sabah is expected to sustain its moderated performance in 2016 due to more infrastructure and developments in the pipeline, which could serve as future catalysts.

Do not ask your auntie about the value of your home. Click here at The Edge Reference Price to find out.