In its bi-annual H1 2020 Property Demand Analytics, iProperty.com.my has stated that the overall H1 2020 national property demand declined by -2.5 percent.
Compared to H1 2019 Portal Demand Analytics, the demand for service residences contracted sharply by -7.2 percent while demand for condominiums remained negative with user visits and property listings declining for both.
Median prices and capital growths for these two property types have also gone down in tandem with the Covid-19 outbreak and the mobility restriction caused by the MCO in Q2 2020.
In contrast, user visits and property listings for terrace homes grew in H1 2020 with a capital growth of +2.21 percent, becoming the only property type with a positive capital growth within the same time period.
However, property listings growth outpaced user visit growth, resulting in a -3.3 percent decline in overall demand.
“For developers they could benefit from the data to strategise on their next project and gauge consumer trends. With these data, we hope all relevant stakeholders would be able to analyse the insights to understand the local market preferences better, which are reflective of the market demand,” said Premendran Pathmanathan, General Manager of Customer Data Solutions at REA Group Asia, commenting on the release of the publication.
The analytics also revealed a drop-in capital growth figures in the major cities during H1 2020. Kuala Lumpur City Centre saw the biggest decline at -7.07 percent, followed by Georgetown with -5.42 percent, Petaling Jaya by -2.59 percent, Johor Bahru by -1.73 percent, and Shah Alam by -1.11 percent.
This trend is expected as properties in prime city areas have premium prices and would be the first to take a hit when an extraordinary event such as the Covid-19 outbreak occurs