PETALING JAYA (April 30): Selangor’s serviced apartment/SOHO overhang units saw a drastic increase in 2019.
Housing loan applications and approvals surged in 2019
KL residential transactions up 1.1% in 2019
Primary market sales improved amid fewer new launches
MAH: Scheduled hotel openings for this year postponed
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 Valuation and Property Services Department (JPPH)'s 2019 Property Market Report, there were 3,118 overhang serviced apartment/SOHO units worth RM1.63 billion in Selangor last year, a substantial 78.9% rise in volume and 69.1% rise in value compared with 2018's 1,743 overhang units worth RM963 million.
However, the unsold under construction and not constructed serviced apartment/SOHO units declined by 26.3% to 7,867 units (2018: 10,681 units) and 91.3% to 202 units (2018: 2,310 units), respectively.
“Completions of new serviced apartment/SOHO units have increased substantially by 63.2% to 17,893 units (2018: 10,963 units) in 2019. On the other hand, starts and new planned supply numbers shrank by 10.6% to 6,969 units (2018: 7,795 units) and 80.9% to 2,448 units (2018: 12,787 units) respectively,” stated the report.
As at end-2019, there were 104,007 existing serviced apartments/SOHO units with another 56,918 units in incoming supply and 21,791 units in planned supply.
Generally, Selangor’s residential primary market softened in 2019 with 18.1% fewer new launches at 9,970 units. Sales performance was also low at 30.6% compared with 44.6% in 2018.
Meanwhile, in the other commercial property sub-sectors, overall transactions of shop units rose by 9.5% in volume and 7.3% in value although overhang increased by 11.7% to 684 units. Purpose-built offices recorded a slightly lower average occupancy rate of 71.7% in 2019 compared with 74.1% in 2018.
As the bread and butter of Selangor property market, industrial property recorded 2,212 transactions worth RM8.28 billion, up by 9% in volume but transaction value reduced marginally by 0.2% (2018: 2,029 transactions worth RM8.29 billion).
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!
Stay calm. Stay at home. Keep updated on the latest news at www.EdgeProp.my #stayathome #flattenthecurve
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