According to online property platform PropertyGuru, its data analytics and solutions arm reports that Malaysia’s residential property market transactions dropped of 44.7% in Q1 compared to the same period last year.
Of the overall number of property transactions across the country, a majority of 61.2% were found to be made by first-homebuyers (FHBs). In three of Malaysia’s major property markets – Klang Valley, Johor, and Penang, FHBs outnumbered purchases made by investors by 13.2%, 65.2% and 0.08% respectively.
Joe Hock THOR, Managing Director of PropertyGuru DataSense shares that sentiment over COVID-19 cases as well as a softer-than-expected GDP performance, is observed to be the culprit for a lower confidence in the market and a YoY dip in residential property transactions this year. However he adds that it is encouraging to note that incentives such as the My First Home Scheme and the Home Ownership Campaign have helped to drive first-homebuyers to take that step towards homeownership during this quarter.
Sub-sales were found to have dominated the market during this quarter, with many property owners selling their assets at competitive prices for liquidation, offering both FHBs and investors alike an opportunity to purchase them at below market value. This is especially prominent in the Klang Valley, which recorded a three-year high for sub-sale transactions at 83.72%.
This sector has typically appealed to more seasoned investors largely due to the ability to place a down payment on the unit, making it easier for an investor to invest in several properties. The secondary market also allows greater access to property, particularly landed units, in better locations.
With a large portion of the nation’s workforce working from home since the start of the pandemic, the type of properties that buyers are purchasing has also changed. This is reflected in the transaction data from Q1 2021, which found that homebuyers are favouring larger, more spacious units in the RM300,000 to RM500,000 price range. Buyers preferred landed units over high-rise in Q1 2021, with terrace houses making up 54% of transactions in Malaysia followed by condominiums/apartments (18%).
Many among the top 10 projects with the greatest number of transactions this quarter are areas located away from city centres in self-contained townships such as Bukit Sentosa and Bandar Bukit Beruntung in Rawang, Bandar Putra in Kulai.