Malaysia’s real estate market handles nearly RM200bil transactions in 2023, overhang falls: Amir Hamzah

By S. BIRRUNTHA  – March 6, 2024

KAJANG: Malaysia’s real estate market saw more than 399,000 transactions totaling nearly RM200 billion in 2023, marking a 2.5 per cent increase in transaction volume and a 9.9 per cent rise in value over 2022.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the performance of completed unsold residential properties, or “overhang” had declined to 26,000 units with a value of RM17.7 billion.

This is compared to nearly 28,000 units worth RM18.41 billion in 2022.

“The average occupancy of special building offices remains steady at 78.5 per cent while occupancy for business xomplexes has increased to 77.4 per cent compared to 75.4 per cent in 2022.

“Moving forward, the country’s real estate sector is expected to continue its recovery momentum despite facing global economic challenges.

“The Madani government through the Budget 2024 continues to provide continuous injections for the development of the national real estate sector.”

Amir Hamzah was speaking at the launch of the 2023 Property Market Report by the Valuation and Property Services Department (JPPH) at the National Institute of Valuation (INSPEN) here today.

According to the report, the number of land transactions also recorded a positive growth of 2.5 per cent to 399,008 in 2023 from 389,107 in the previous year.

This positive growth trend was driven by a higher increase in transaction values across all subsectors namely residential (7.1 per cent), commercial (17.5 per cent), industrial (13.1 per cent), agricultural (4.6 per cent), and development land and others (13.8 per cent) compared to 2022.

A more vigorous performance was also recorded for new residential launches, increasing by 4.4 per cent to 56,526 units (2022: 54,118 units) with a better sales performance of 40.4 per cent (2022: 36 per cent).

The Malaysian House Price Index (MHPI) stood at 216.5 points (RM467,144 per unit) in 2023 with a moderate annual growth of 3.2 per cent.

All major states recorded positive annual growth, led by Johor (6.2 per cent), Penang (3.8 per cent), Selangor (2.9 per cent), and Kuala Lumpur (1.8 per cent).

Looking ahead, Amir Hamzah said the positive developments in the property market driven by the measures in the Budget 2024 are aligned with the positive and stronger economic outlook for 2024 compared to 2023.

Recognising the importance of the information published by the National Property Information Centre (NAPIC) to the real estate industry, he urged all data providers to provide accurate and precise information to NAPIC.

He also requested that they continue to collaborate closely with JPPH and NAPIC, as their data contributions have a significant impact on shaping national real estate sector policies.

“I also urge all involved parties, especially developers, planners, or development approval agencies, to continue referencing the data provided by NAPIC.

“As communicated by the director-general, this data and information can be accessed through the NAPIC portal,” he noted.

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