1q 2024 Property Transactions Up 34.3 Pct To Rm56.53 Bln

KUALA LUMPUR, May 15 (Bernama) --The Malaysian property market was active in the first quarter of 2024 (1Q 2024), recording a 34.3 per cent growth compared to the first quarter a year ago with more than 104,297 transactions worth RM56.53 billion, a 34.3 per cent jump in transaction value.

Valuation and Property Services Department Director-General Abdul Razak Yusak said in terms of volume, property sub-sectors recorded positive growth in 1Q 2024; the commercial sub-sector grew by 33.4 per cent, residential by 16.6 per cent, industry by 14.3 per cent, agriculture by 13.7 per cent, and development land and others, 10.7 per cent.

"The residential sub-sector continues to dominate market activities with over 62,000 transactions, valued at over RM25 billion, comprising nearly 60 per cent of overall property market activities.

"Housing priced at RM300,000 and below dominate the market with 33,500 transactions, comprising more than 50 per cent of total transactions," he said when presenting the 1Q 2024 Real Estate Market Report in a live broadcast on Facebook today.

According to Abdul Razak, construction activities also showed positive growth in 1Q 2024 when commencements rose to more than 21,300 units, an increase of almost 8 per cent from the previous year, while planned new developments decreased to around 11,000 units.

New residential launches increased by 19.8 per cent to 5,585 units from 4,661 units in 1Q 2023.

The serviced apartment segment saw a 70 per cent spike in completed units to 5,500. Projects starting construction and planned new developments each rose by more than 100 per cent versus the same quarter in 2023.

The Malaysian House Price Index (IHRM) rose marginally by 0.5 per cent to 216.9 points, with house prices averaging RM468,000 a unit, Abdul Razak said.

"All states recorded moderate growth of between 0.5 and 4.6 per cent, except for Kuala Lumpur, Penang, Perak, Melaka, and Sarawak where prices contracted by between 0.2 and 2 per cent.

"Terraced housing remained stable with a positive 1.8 per cent growth while other types of housing recorded a marginal decrease," he said.

Completed unsold housing, commonly known as a residential overhang, decreased to 24,208 units worth RM16.49 billion compared with 25,816 units worth RM17.68 billion in 4Q 2023.

Serviced apartment overhang rose by 5.2 per cent to 21,913 units, with a 9.7 per cent rise in ringgit value to RM18.16 billion.

“Serviced apartment units priced between RM500,000 and RM1 million make up 58.1 per cent of the total overhang,” he said.

The performance of private purpose-built offices recorded a marginal increase, he said.

"The occupancy rate of privately owned purpose-built offices rose marginally to 72 per cent versus 71.9 per cent in the previous quarter," he said.

-- BERNAMA