Local Property Market Is Showing Positive Sign In 2019 First Half
The local property market is gradually recovering ever since Home Ownership Campaign 2019 (HOC) launched. According to a report data from National Property Information Centre (Napic) in September, local property market improvement can be noticed in the first half of 2019. The volume of transaction nationwide rose 6.9% comparing to the first half of 2018. The number of unit transacted in the first six months of 2019 are 160,172 which resulted to RM68.3 billion of value of transaction.
In H1 2019, landed and high-rise residential properties were the largest contributor to the overall property sector, with a market share of 62.4 percent 99,922 transactions worth RM34.65 billion recorded. According to reported data from National Property Information Centre (Napic), the property overhang amount in Johor remain the highest, followed by Perak, Selangor, Penang. There were 18.8% of residential units and 70.0% of serviced apartment in unsold condition in Johor. Despite of this, the overhang growth of residential property unit were slowing down in first six month of 2019 with a mere increase of 5000 units comparing to second half of 2018. Overhang unit is 32,810 in the first 6 months of 2019. Most of the overhang property are priced from RM200,000 – RM300,000, followed by RM200,000 – RM300,000 and more than RM1,000,000. Reasons of overhang are most likely due to home purchaser’s affordability issue and housing projects in location with lower demand.
An improvement of local property market in the first half of 2019 not just only symbolizes the initiative taken by the government is working, but also showing the loan approval rate from bank is getting higher.
Do you wish to see the HOC campaign extend another 6 month until June 2020 to continue spurring our property market? Let’s talk!