PETALING JAYA (April 30): Kuala Lumpur residential property transaction volume saw a slight increase of 1.1% in 2019 from the previous year. However, total transacted value declined 9.9% against 2018.
Housing loan applications and approvals surged in 2019
Primary market sales improved amid fewer new launches
Sharp rise in Selangor serviced apartment overhang
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Demand for warehouses up but industrial overhang continues to rise
Johor residential property transactions grew in 2019
Serviced apartment prices under pressure as supply surges
Penang reduced serviced apartment overhang by 50% in 2019
According to the 2019 Property Market Report by the Valuation and Property Services Department (JPPH) released yesterday, Kuala Lumpur’s residential market performance recorded 11,100 transactions worth RM8.34 billion last year compared with 10,983 transactions worth RM9.26 billion in 2018.
“The market saw a higher number of transactions in the RM500,000 to RM1 million price bracket. Condominium and apartment units continued to propel the residential market, contributing 47% of total transactions in KL,” the report stated.
The number of residential overhang units in KL reduced by 5.6% to 2,605 units from 2,769 units in 2018, while the number of unsold under construction and unsold not constructed units dropped 26.9% and 13.6% respectively.
Meanwhile, KL’s SOHO/ serviced apartment sub-sector showed a downturn as their volume and value of transactions decreased by 4.2% and 11.4% to 2,029 units and RM1.82 billion respectively.
The report noted that overhang and unsold under construction SOHO and serviced apartment units increased while unsold not constructed units decreased in the review period.
As at end-2019, there were 71,251 existing SOHO/serviced apartment units with another 45,596 units incoming and 88,892 units under planned supply.
Other sub-sectors such as the commercial and purpose-built office sub-sectors have seen an overall decline in transaction volume and value as well as overall occupancy rates.
However, surprisingly, there was a slight improvement in the average occupancy rate of shopping malls at 83.4% compared with 82.8% in 2018.
EdgeProp Malaysia will be hosting a virtual Fireside Chat titled "The Malaysian property market picked up in 2019! Could this be its last hurrah?" through Facebook Live on May 1 at 2pm.
Join us for more insights from Rehda president Datuk Soam Heng Choon, Rehda vice-president and Selangor branch chairman Zulkifly Garib and Rehda Johor branch chairman Datuk Steve Chong Yoon on the market outlook post-MCO!
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