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PUTRAJAYA: Residential overhang in the country increased 3.3% to 31,661 units valued at RM20.03bil in the first half of 2020, compared to 30,664 units valued at RM18.82bil in the corresponding previous period, due to the slow absorption of the primary market . .
According to the National Property Information Center (Napic), the number of new launches in the first half of 2020 decreased by 43.6% to 13,294 units, compared to 23,591 units in the corresponding previous period.
Sales performance was poor at 3.3%, considerably lower compared to the first half of 2019 (30.9%).
Napic said the lower new launches can be attributed to the implementation of the motion control order on March 18.
Newly launched homes priced between RM100,000 and RM500,000 dominated the market in the first half of 2020, with the RM200,000 to RM300,000 price segment leading the offering with 4,022 units (30.3%).
Meanwhile, sales concentrated in units priced RM400,000 and less constituted 92% of total sales.
By property type, townhomes dominated new releases. One-story and two- and three-story terraces contributed 55.6% (7,389 units) in total, followed by condo / apartment units (29.7%; 3,951 units).
Meanwhile, the segment of serviced apartments, which is included in commercial property although its use as residential, registered 1,433 transactions worth RM0.97bil in the first half of 2020, representing 17.7% of the volume of commercial property transactions and 11.5% of the total value.
Its market performance registered a decrease of 24.2% in volume (first half of 2019: 1,891 transactions) and of 25.3% in value (first half of 2019: RM1.3bil).
The overhang of serviced apartments continued to increase, accumulating a total of 21,683 units valued at RM18.64bil, an increase of 26.5% in volume and 23.9% in value.
The number of unsold units under construction and unsold units not built increased to 35,720 units and 10,874 units, up 5.6% and 42% respectively.
Meanwhile, the broader real estate sector recorded 115,476 transactions worth RM46.94 billion in the first half of 2020, a decrease of 27.9% in volume and 31.5% in value compared to the first half of 2019, which recorded 160,165 transactions worth RM 68.53 million.
Additionally, Napic said that the Malaysian House Price Index (MHPI) continued to grow at a moderate trend.
As of the second quarter of 2020, the IPHM stood at 198.3 points (2010), an annual increase of 0.4%, the lowest annual growth recorded since 2010.
However, on a quarterly basis, the index points marginally decreased 0.7% compared to the first quarter of 2020 (199.7 points).
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