Johor retains highest number and value of property overhang in the country

Credit: PropertyGuru

Poovenraj Kanagaraj

In a press statement released by the Valuation and Property Services Department Malaysia (JPPH Malaysia), Malaysia’s property market in 2019 was stated to have recorded a marginal improvement.

A total of 328,647 transactions worth RM 141.40 billion were recorded, with an increase of 4.8 percent in volume and 0.8 percent in value compared to the previous year. 2018 had recorded 313,710 transactions worth RM 140.33 billion.

Commercial market activity saw the highest improved by 7.2 percent followed by residential (6.0 percent), industrial (3.8 percent) and agricultural (2.0 percent) with the exception of development land sub-sector, which declined slightly by 1.2 percent. The residential sub-sector led the overall property market, with 63.7 percent contribution.

In the residential segment,  JPPH recorded 209,295 transactions worth RM 72.42 billion recorded in the review period, an increase by six percent in volume and 5.3 percent in value in comparison to 2018.

Performance across the states has also improved and focus on price ranges of RM 300,000 and below accounted for 61.7 percent of the residential transaction, followed by price ranges between RM300,000 to RM500,000 (21.3 percent), RM500,000 to RM1,000,000 (13.3 percent) and more than RM1 Million (3.7 percent).

On the other hand, the overhang and unsold segment took an upturn, with 30,664 overhang units worth RM 18.82 billion, recording an decrease by 5.1 percent in volume and 5.2 percent in value.

In 2018, there were 32,313 units worth RM 19.86 billion.

Unsold under construction and not constructed  improved as the number dropped to 72,692 units and 16,774 units, down by 10.2 percent and 15.6 percent respectively.

The press statement by JPPH also stated the highest number and value of overhang in the country with 5,627 units worth RM 4.7 billion is in Johor, accounting to 18.4 percent and 25.0 percent respectively of the national total.

The state recorded the highest serviced apartment overhang with 71.2 percent share in volume (12,207 units) and 76.9 percent share in value (RM11.56 billion).

Majority of the overhang units is in Johor Bahru district, accounting for 99.2 percent of the state’s overhang (12,105 units worth RM11.5 billion). The state also held 34 percent share (11,490 units) of the country’s unsold under construction.

Perak came second with 5,024 units worth RM 1.52 billion, followed by Selangor (4,687 units worth RM3.75 billion) and Pulau Pinang (3,353 units worth RM2.59 billion).

By price range, those priced RM300,000 to RM500,000 (7,883 units) formed 25.7 percent while more than RM500,000 (12,528 units) formed 40.9 percent of the total residential overhang.

The Malaysian House Price Index (MHPI) continued to increase at a moderating rate, increasing by 1.9 percent (3.8 points) on an annual basis.

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here