KUALA LUMPUR (April 24): Perak property market transaction values increased marginally by 3.1% despite volumes being down by 1.4%, according to the recently released “Property Market Report 2014” by the National Property Information Centre (Napic).
The state recorded 44,791 transactions worth RM8.71 billion last year, compared with 46,234 transactions worth RM8.59 billion in 2013.
“Economic slowdown has certainly hit Perak’s property market in the last year. Low prices for commodities such as rubber and oil palm have also affected the performance for agricultural and industry lands in Perak,” said Chou Yee Seng, Perak's state resident valuer in Raine & Horne International Zaki + Partners Sdn Bhd.
Last year, the state’s agricultural land transaction only registered a mild growth of 1.8%. The residential, commercial and industrial sub-sectors were down by 3%, 16.7% and 28.9% respectively.
“People are holding back their money to wait for the property market bubble to burst. I do think the property transaction downtrend will be continuing this year, even the next few years,” Chou shared.
However, in terms of value, residential (8.8%), commercial (5.3%) and development land (11.3%) observed an uptrend last year.
According to the report, prices of residential properties firmed up across the Perak, with positive movements charted mostly for terraced units. Houses in strategically located schemes near towns, industrial areas as well as commercial centres witnessed capital gains.
“Prices of stratified property were stable, with increases registered in good locations with high rental rate of return. As at 4Q2014, the All House Price Index for the state stood at 227.1 points, up by 11.9% over 2013,” the report showed.
Nevertheless, the residential overhang and unsold situation was less promising in the review period. There were 1,055 units of residential overhang worth RM296.38 million, up slightly by 1% against 2013’s 1,045 units worth RM176.72 million.