Malaysia’s Property Market Rebounds with Strong Growth in Transaction Volume and New Construction in Q1 2024
After years of pandemic-induced slowdown, Malaysia’s property market is finally showing signs of a rebound, according to the latest data from the Valuation and Property Services Department (JPPH).
In the first quarter of this year, over 104,000 property transactions were recorded, marking a significant 17 per cent growth compared to the same period in 2023. The value of these transactions also saw a substantial increase of 37 per cent, totaling RM56.53 billion.
Residential properties continued to be the driving force behind market activities, accounting for 60.2 per cent of total transactions. Interestingly, homes priced under RM300,000 were the most popular choice among buyers, making up half of all residential transactions.
According to JPPH director-general Abdul Razak Yusak, the construction sector also saw positive growth with an eight per cent increase in new units being built. Additionally, there were 5,885 newly launched units in the first quarter of this year, representing a 19 per cent year-on-year growth.
While the overall market performance has been promising, developers seem to have a cautious approach towards new projects. The number of new planned supply dropped by 15 per cent in the first quarter of this year compared to 2023.
Despite the minor increase in home prices, with the home price index rising by 0.5 per cent, Malaysia’s average home price stands at around RM468,000 per unit. Most states recorded modest growth in home prices, except for Kuala Lumpur, Penang, Perak, Melaka, and Sarawak where prices saw a slight decrease.
In terms of overhang properties, there was a decrease in the number of units from 26,000 to 24,000 compared to the same period last year. However, the number of unsold serviced apartments slightly increased by about 5 per cent, with 21,913 units valued at RM18.16 billion.
Properties priced between RM500,000 and RM1 million accounted for over half of the overhang units, indicating a need for developers to focus on meeting the demand for affordable housing in the market. Overall, the rebound in Malaysia’s property market is a positive sign for the real estate industry and the economy as a whole.
