KAJANG: Residential overhang continued to increase in the first half of 2019 (H1’19) though at a lower rate than last year.
According to the National Property Information Centre (NAPIC), bulk of the overhang units were condominium and apartment units priced between RM200,000 to RM300,000, mainly contributed by Perak.
There were 32,810 residential overhang units worth RM19.76bil, an increase in volume of 1.5% whilst the value decreased by 0.5%.
Condominium and apartment units comprised 43% of the overhang.
Speaking at the real estate market briefing for the first half of 2019, Deputy Finance Minister Datuk Wira Haji Amiruddin Haji Hamzah said such indicators regarding these overhangs are important to ensure that the housing supply is consistent with demand and that mismatches can be minimized.
“I recommend that both developers and authorities who approve development projects and property prices pay attention to this overhang data.
“It is imperative for developers and the relevant authorities to ensure that the homes built are able to meet the demand of the location at a reasonable price to the buyers, ” he said.
In the first half of 2019, the property sector recorded 160,172 transactions worth RM68.3bil, representing a 6.9% increase in volume and 0.8% in value as compared to the first half of 2018, which recorded 149,862 transactions worth RM67.74bil.
Residential property continued to support the overall property sector with 62.4% market share, followed by agriculture property with 21.6% share.
There were 99,922 transactions worth RM34.65bil recorded in H1’19, an increase of 6.1% in volume and 9.5% in value.
Performance across the states improved in the review period, all recording higher market volume except for the Federal Territory and Perak.
In the primary market, the number of new launches in H1’19 were far behind those recorded in the same period last year.
There were 23,591 units launched, contracted by 49.4% as compared to 46,617 units in H1’18.
As for commercial property, there were 12,960 transactions worth RM12.53bil recorded in the first half of the year, up 20.4% in volume but value declined by 20.8%.
The shop sub-sector dominated 53.4% of commercial property transactions and 46.3% of total value, recording 6,923 transactions worth RM5.8bil.
The shop sub-sector overhang continued to increase as well, recording a total of 5,760 units with a value of RM4.98bil, up 13.9% in volume and 22% in value against the preceding half.
However, the unsold under construction and not constructed scenario improved with volume decline by 11.9% to 6,370 units and 3.6% to 371 units respectively.
The Unsold Property Enquiry System Malaysia (UPESM 2.0) Malaysia was also launched in conjunction with the briefing.
The improved system enables users to obtain data related to unsold properties in Malaysia according to state, district and local authorities in a faster and more informative manner.
Read more at https://www.thestar.com.my/business/business-news/2019/09/23/unsold-homes-spike-over-1h19-says-napic#Jgxg8AjtZcOj0s6T.99