According to iProperty.com.my, the national demand for subsale property in 2020 fell by -1.3 percent Year-on-Year (YoY). The demand for high-rise properties is down in line with prices while the demand for terrace houses remained positive at a capital growth of +2.6 percent.
Among the major capital cities in Malaysia, only Shah Alam and Seremban recorded a positive demand, of +1.7 percent and +0.9 percent, respectively. KL City Centre’s (KLCC) demand contracted by -8.9 percent with -11 percent capital growth decline whereas Georgetown’s demand contracted by -11.9 percent with -8.7 percent capital growth decline.
“Property demand in the second half of 2020 began to recover as restrictions were relaxed despite the Movement Control Order (MCO) has dampened the country’s overall economic growth,” General Manager of Customer Data Solutions at REA Group Asia, Premendran Pathmanathan said during the 2020 Property Demand Analytics.
The virtual presentation highlighted the data by states which are Kuala Lumpur (KL), Selangor, Penang, and Johor. All four states represent nearly 70 percent of the property market in Malaysia.
Kuala Lumpur to record negative demand as population migration increases and now, as the Work from Home (WFH) trend becomes the new norm, many people are moving to affordable housing in the suburbs of Selangor, leaving the property market in KL muted.
Selangor have benefited from the population outflow brought on by the Covid-19 outbreak. These residential suburbs offer larger properties with better value for money and have seen some of the fastest-growth in demand.
“Suburban districts like Puncak Alam, Dengkil, Semenyih to name a few, top the list for the most in-demand areas in Selangor,” the General Manager added.
Penang’s overall subsale property demand has contracted by -9.5 percent with demand for service residences plunging by -20.4 percent in 2020 as this contrasted sharply with the previous year as it recorded tremendous growth in 2019.
Johor recorded a double-digit decline across all property categories. However, terrace houses recorded capital gains as most of the home buyers in Johor still prefer landed homes.
The state’s Iskandar Puteri recorded +118.6 percent growth in demand making it the most in demand area in Johor with its listing supply reduced by more than half.