The Malaysian property market has shown significant activity in the first quarter of 2024, with over 104,297 transactions worth RM56.53 billion. This represents a substantial 34.3% increase in value compared to the same period in the previous year. Valuation and Property Services Department director-general Abdul Razak Yusak highlighted the positive growth in various property sub-sectors during this period.
In terms of volume, the commercial sub-sector experienced a 33.4% growth, while the residential sub-sector saw a 16.6% increase. The industry, agriculture, and development land sub-sectors also recorded positive growth rates of 14.3%, 13.7%, and 10.7%, respectively. However, it was the residential sub-sector that continued to dominate market activities, accounting for over 62,000 transactions valued at over RM25 billion, making up nearly 60% of overall property market activities.
One interesting trend observed in the market was the dominance of housing priced at RM300,000 and below, which accounted for more than 50% of total transactions. This indicates a strong demand for affordable housing options among buyers. Construction activities also showed positive growth in Q1’24, with commencements rising to more than 21,300 units, an increase of almost 8% from the previous year. However, planned new developments decreased to around 11,000 units during the same period.
New residential launches saw a significant increase of 19.8% to 5,585 units in Q1’24, reflecting continued interest in the property market. The serviced apartment segment experienced a notable 70% spike in completed units, reaching 5,500. Projects starting construction and planned new developments also saw substantial growth, each rising by more than 100% compared to the same quarter in 2023.
The Malaysian House Price Index rose marginally by 0.5% to 216.9 points, with house prices averaging RM468,000 per unit. While most states recorded moderate growth in house prices, Kuala Lumpur, Penang, Perak, Malacca, and Sarawak experienced price contractions ranging from 0.2% to 2%. Terraced housing remained stable with a positive 1.8% growth, while other types of housing recorded a marginal decrease.
The completed unsold housing, or residential overhang, decreased to 24,208 units worth RM16.49 billion in Q1’24, compared to 25,816 units worth RM17.68 billion in the previous quarter. However, the serviced apartment overhang rose by 5.2% to 21,913 units, with a 9.7% increase in ringgit value to RM18.16 billion. Serviced apartment units priced between RM500,000 and RM1 million accounted for 58.1% of the total overhang.
The performance of private purpose-built offices also saw a marginal increase, with the occupancy rate rising to 72% in Q1’24. This slight improvement from the previous quarter indicates a positive trend in the office property market. Overall, the Malaysian property market in the first quarter of 2024 has shown resilience and growth across various sub-sectors, reflecting continued interest and activity in the real estate sector.