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ON FRIDAY
MAY 15, 2015
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Propertymarket
report 2014
>Analysis on the residential sector
PART2
positive. In terms of value, all states
recorded positive upwardmovements
except for Labuan, Pahang andKelantan.
NEWLAUNCHES
The primarymarket recorded a higher
number of new launches – 68,351 newunits
comparedwith 62,376 units recorded the
year before. According to the department,
the rise was largely due to the number of
condos and serviced apartments, which
amounted to nearly 44.9%of total new
launches. Sales performance showed a
moderate 44.7%, relatively good looking at
the five-year performance ratio.
States recording the highest number of
new launches were Selangor (18%), Kuala
Lumpur (17.4%) and Johor (16.8%). Sales
performance across the boardwas
moderate, with Kuala Lumpur in the lead,
followed byNegri Sembilan, Kelantan and
Sabah.
According to category, there was a fair
balance between landed (49.7%) and high-
rise ((49.6%) units launched. In terms of
performance, landed units achieved higher
overall take-up at 34.4% comparedwith its
high-rise counterpart which amounted to
just 11.1%. Looking intomore details, the
type of landed propertywhich formed the
majority of new launches were terraced
houses, accounting for 37.7%of the total,
securing 36.9% in sales performance.
Serviced apartments were the next
highest, achieving a 27.8% share but its
sales performance was low at only 5.5%.
MARKET STATUS
The number of residential overhang units
receded, 11,816 units worth RM4.04 billion
– down by 12.8% in volume and 15.9% in
value. Still, looking at the charts on
residential unsold status, the unsold under
construction increased by 6%while the
unsold not constructed recorded an 8.5%
rise.
By state, Johor recorded the highest
number of overhang units – 30.2%of the
total. The state also held the highest
number of unsold under construction
(30.5%) and unsold not constructed
(40.8%) units in the country. Of the
overhang units, terraced houses formed
the bulk, mostly concentrated in Johor, in
particular Johor Baru (823 two to three-
storey terraced houses); andKluang (466
single-storey terraced houses). These units
remained unsold for more than 24months.
Of the country’s total overhang
residential units, condos/apartments and
serviced
apartments
make up 20.7%.
Kuala Lumpur
held the bulk,
under the
condos/
apartments
category. Half
of which are in
the RM500,000
and above price
bracket. The
unsold units
under
construction
and not
constructed
categories saw
condos/
apartments and
C
ONTINUING
fromwhere we left off
last week on the overall property
market outlook as per information
released by the Valuation and
Property Services Department, we learn that
residential real estate continues to drive the
Malaysian propertymarket. To recap, there
were 247,251 transactions worth RM82.06
billion recorded during the reviewperiod.
Looking at the transactions on the
distribution of volume, here are some
interesting facts noted:
• themarket share of residential units priced
RM200,000 and below and those
between RM200,000 and RM500,000
was quite similar, eachwith 43.1%and
41.3% respectively;
• over the three-year period, the declining
volume trend in the former price bracket
wasmatched by the increasing volume trend
in the latter price bracket;
• the two top-notch price brackets, which
were the RM500,000 to RM1 million and the
above RM1 million, had increased by 23.2%
and 16.2% respectively;
• Selangor, Johor and Perakwere the three
leading states in the residential segment
taking up 24.6%, 15.8%and 11%of themarket
share respectively;
• Seven states recorded upwardmovements
(including Johor and Penang) while
nine spiralled down (Perak and Selangor
included);
• Valuewise, all states recorded increases
except for Labuan, Pahang andKelantan;
and
• By house type, terraces accounted for
41.1% (102,313 units), followed by condos/
apartments at 12.6% (31,072 units) of the
national total.
If you look at the chartwhichdepicts
residential volume trends of various residential
property, youwill notice that the decline in
property between the price range of
RM200,001 andRM500,000 sawan increase in
the other two categories – belowRM200,000
and aboveRM500,000. This goes to showthat
a large number ofmid-income earners have
opted for lower-pricedhouseswhile some
have gone for themore expensive addresses.
According to statistics recorded, the three
leading states in the residential segment were
Selangor, followed by Johor and Perak, with
24.6%, 15.8% and 11%market share
respectively. However, on the whole, amixed
performance was enjoyed across all states –
seven recording upward trends, nine
otherwise. Briefly, Selangor and Perak
dropped, Johor and Penang remained
serviced apartments outnumbering the terraced
units, accounting for 49.4% and 63.6% in each
unsold category respectively.
PRICEMOVEMENTS AND RENTALS
TheMalaysianHouse Price Index showed a
moderate trend, at the fourth quarter of 2014
standing at 213.1 points – an increase of 7%on
annual basis (comparedwith the base year
2000), though lower than the same quarter of
the previous year. The index softened slightly,
by 0.2%on a quarterly basis. By type, the
Malaysian Terrace House Price Index also
depicted a similar trend, up by a lower rate of
7.8%on annual basis to 208.9 points but
softened by 0.1%on quarterly basis. The
MalaysianHigh-Rise Unit Price Index increased
by a lower 8%on annual basis but eased slightly
by 0.3%on quarterly basis. Refer the All House
Price Index chart for comparison.
Rentals showed amore stable trend across
the states, recording better figures in areas with
good road and rail connectivity and those with
higher learning institutions. In Kuala Lumpur,
double-storey terrace rentals rose to between
RM1,000 and RM2,000 per month, with
premium rentals recorded above RM3,000
per month in prominent residential areas like
Taman TunDr Ismail, Bangsar andHartamas.
In Selangor, themore significant areas like
Damansara, Petaling Jaya and Subang fetched
between RM1,4000 and RM3,000 per month
(double-storey terraces) while other areas
secured between RM800 and RM1,000. The
Nusajaya area in Johor recorded high rentals
in places like HorizonHills which fetched
between RM2,500 and RM3,000 per month in
rentals. Other areas in Johor could rake in
between RM500 and RM1,000 per month.
On the whole, construction activities rose
– completions increased by 18.7%, start-ups
by 6.8%, and newplanned supply by 22.3%.
Most of these construction activities were
largely being carried out inmajor states that
included Selangor, Johor, Penang and Federal
Territory.
Residential Market Performance
0
50000
100000
150000
200000
250000
300000
5.0%
10.0%
15.0%
20.0%
25.0%
-15.0%
-10.0%
-5.0%
0.0%
2010
2011
2012
2013
2014
Volume 226,874
269,789
272,669
246,225
247,251
% Change 7.2%
18.9%
1.1%
-9.7%
0.4%
Volume
Information retrieved from Property Market Report 2014