• Napic said the overall overhang situation improved in 1H2022, down by 7.5% to 34,092 units from 2H2021 in terms of volume, and declined 4.6% to RM21.73 billion in terms of value.

KAJANG (Sept 14): The property sector has shown signs of recovery in the first half of this year (1H2022) as the economy reopened, but office and retail segments remained challenging amid a supply glut, according to the National Property Information Centre's (Napic) semi-annual report.

Napic said the overall overhang situation improved in 1H2022, down by 7.5% to 34,092 units from 2H2021 in terms of volume, and declined 4.6% to RM21.73 billion in terms of value.

Johor recorded the highest overhang in the country with 68.0% (15,423 units), followed by Kuala Lumpur with 18.9% (4,279 units) and Selangor’s 9.9% (2,248 units) share, Napic’s data released on Wednesday showed.

For purpose-built offices, there are over 24 million square metre (sqm) office space nationwide as at end-June 2022, with occupancy rate of 77.7%, down from 78.5% a year ago.

During the launch of the report, Deputy Finance Minister 1 Datuk Indera Mohd Shahar Abdullah said the supply situation for purpose-built office and shopping complexes is increasingly challenging.

“In order to paint a more positive picture to the investment prospects of the country, especially during the period of economic recovery, I urge that building owners look at more economical use alternatives, so that the use of space can be optimized,” he said.

Napic’s data also showed that the performance of shopping complexes moderated in 1H2022, with the national occupancy rate seeing a slight decline at 75.7%, as compared to 2H2021’s 76.3%.

Nonetheless, the residential property sector recorded 116,178 transactions worth RM45.62 billion in 1H2022, increasing by 26.3% in volume and 32.2% in value year-on-year, the agency said.

Overall, the property sector saw more than 188,000 transactions recorded in 1H2022, worth RM84.40 billion, equivalent to an increase of over 30% in volume and value compared to the same period last year.

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