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ON FRIDAY
MAY 1, 2015
purchasers and industry
players, due to post-GST
implementations. However,
themarket is expected to
self-adjust in due course and
domestic demand is
predicted to remain the key
driver of the country’s
economic growth. These are
backed by the continuous
expansion of activity in the
private sector.
Other than the 0.7% rise
in construction activity and
the uptrend period it has
enjoyed across the sub-
sectors, marginal growth in
the residential sector
is also derived from the
loans approved and
disbursed.
CSI stood at 83% at Q4 of
2014, the lowest recorded
throughout the year due to
precautionary sentiments recorded
within households on finances,
growing concern regarding
employment and an indefinite
financial outlook.
MIER’s BCI recorded a 86.4% for
the same period, but this was due to
the depreciation of the ringgit and
falling oil prices which influenced
the level of confidence in the
commercial property sub-sector
where volume grewmarginally, but
value dropped.
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PropertyMarket Report 2014
>Market outlook as released by the Valuation and Property Services Department
T
HERE
is a belief that one
should look back and
learn from the past in order
tomove forward. With this,
we look at last year’s property
market report (just released), to be
armed and ready for the challenges
to be expected. In our property
column this week, we share a
general summary, followed by a
more detailed outlook on how the
residential sector will fair, new
launches, up-coming areas and the
forecast for 2015.
2014 OVERVIEW
On the whole, the 36th Property
Market Report by the said
government department declared
in its report that the property
market in 2014was slightly better
than the previous year, andwas in
tandemwith the country’s
economic growth. Real estate
transaction rose by 0.8% in volume
while total transaction in value
improved by 7%.
The residential continued to
dominate the sector, taking up
64.4%of the overall market share.
Performance of the sub-sector
market was maintained, due to the
increase in transaction volume,
additional new launches in the
primarymarket, declining overhang
andmore construction activities.
The government’s involvement
PART1
PROPERTYMARKET ACTIVITY
A total of 384,060 property
transactions were recorded for 2014,
amounting to RM162.97 billion. On
the whole, the residential,
commercial and agricultural sub-
sectors recorded growthwhile the
industrial and development land
sub-sectors recorded a slight
downturn. However, value of
transactions moved independently,
with residential, industrial and
development land sub-sectors
recording double-digit growths.
The prime sub-sector showed a
sustainedmarket – a slight
turnaround inmarket activity,
moderate performance for new
launches, improved overhang
situations and a positive trend in the
construction sector.
According to the report, prices
and rentals remained firmalthough
signs of pricemoderating were seen
in the All House Price Index.
There were 247,251 transactions
worth RM82.06 billion recorded in
the reviewperiod. Residential
continued to drive theMalaysian
propertymarket.
Followour column next week for
more insights into the property
market report for 2014.
supplying affordable homes and
incentives for first-time home
buyers also helped to ensure the
sustainability of the sub-sector,
apart from its efforts to curb
speculating activities and price
increase (bymoderating the
MalaysianHouse Price Index).
Coolingmeasures enforced in the
last two years also helpedmoderate
themarket by giving it a lift in 2014.
In the commercial sub-sector,
market activitywas reported to be
moderate, on the account of less
favourable Business Conditions
Index (BCI) and Consumer
Sentiment Index (CSI). However,
the retail and office sub-sector
delivered a slightly better
performance, a slight increase
from79.5% to 81.4% and 82.9%
to 84%, respectively.
According to the Finance
Minister II Datuk Seri Ahmad
Husni Hanadzlah, themarket in
2015 is expected to bemoderate.
Various reactions are expected
among developers, home