Property transactions to exceed RM100b in 2011

KUALA LUMPUR: The value of property transactions in Malaysia for the year 2011 is expected to exceed RM100 billion on the back of the Malaysian economy's recovery which has re-invigorated the overall property market.

Valuation and Property Services Department director-general Datuk Abdullah Thalith Md Thani said 342,179 transactions worth RM96.77 billion were recorded between January and November 2010, an increase of 12.2% year-on-year.

"The value of transactions has increased by 35% from RM71.67 billion in 2009," he told a press conference at the 4th Malaysia Property Summit on Tuesday Jan 18.

"The increase is due to the return of confidence in the market as well as the various government initiatives such as the Economic Transformation Programme which has given the property market a boost," he said.

In the first six months of 2010, the number of transactions recorded a double-digit growth of 17% while the following five months grew at a slower pace of 7%.

The residential property subsector made up 60.2% share of transaction volume in the Jan-Nov 2010 period followed by agriculture land with 21.5%, commercial with 10.6% and industrial with 2.6%.

In the residential property submarket, Penang made up the highest number of transactions at 9.7%, Kuala Lumpur at 8.2%, Selangor 7.2% and Johor 3.6% with terraced houses dominating the market.

"Kuala Lumpur recorded more condominium transactions with 10,033 units compared with 3,756 terraced units," he added.

He said the new proposed development of the Malaysian Rubber Board land in Sg Buloh and the Warisan Merdeka building, in Kuala Lumpur would become the new architectural icons in Malaysia and the world.