Malaysian Property Market 1H 2021: Recovery Or Still Being Discovered?
Malaysia’s property market: Synchronising recovery with the economy.
Let’s dive into more data and facts which we could get from many other news portal through the internet today.
NAPIC’s assessment of property market Malaysia
September 15, 2021 14:56 pm +08 by theedgemarkets.com
The property market is expected to be on the recovery path in line with the gradual economic recovery, supported by the implementation of various government initiatives and assistance, said the National Property Information Centre (NAPIC).
Property market performance recorded a significant increase in the first half of 2021 (1H21) compared with in the same period last year.
In the Malaysia Property Market Report for 1H21 released today, volume of transactions across the sub-sectors showed upward movements, it said with residential, commercial, industrial, agriculture, and development land sub-sectors recorded year-on-year growth of 22.2%, 28.5%, 29.4%, 13.9%, and 21.3% respectively.
“All states recorded higher market volumes except for Wilayah Persekutuan (WP) Putrajaya. The four major states (and federal territory), namely Kuala Lumpur, Selangor, Johor and Pulau Pinang formed about 50% of the total national residential volume,” it shared.
In the primary market, the report showed there were 16,660 units launched, down by 34% against 25,227 units (revised) in 1H20 while sales performances for new launches 24.7% better than in 1H20 (revised 12.9%).
NAPIC said Selangor recorded the highest number of new launches in the country, capturing nearly 24.7% (4,114 units) of the national total with sales performance at 26.2% followed by Kuala Lumpur with 3,651 units or 21.9% with sales performance at 3.5%. The article is very long with a lot more insights. Read full at theedgemarkets.com : Property market on recovery path amid govt initiatives – NAPIC
Transactions are positive because we compared it with the first half of 2020
We need to remember that March 2020 was the first time we received a Movement Control Order (MCO 1.0). We became more relaxed on May 3, 2020.
In other hand, we can say that 1H 2020 is a short and 4-month transaction only.
As for this 1H 2021, we have our MCO 3.0 (Full MCO, full lockdown) on June 1, 2021, there are actually a total of 5 months of transactions.
Therefore, between 1H in 2021 and 1H in 2020, we should see a slightly higher number of transactions in 1H in 2021 ya…
So, transactions up because of additional 1 month compared to last year?
Property market is still a key indicator of economic conditions
High unemployment rate means that many people are jobless and they couldn’t care for their living and so on. How could they possible to be thinking about buying a property during this pandemic?
And what is the latest unemployment rate reported recently? It’s 4.8 percent
KUALA LUMPUR, Aug 9 by malaymail.com ― The unemployment rate in Malaysia has climbed to 4.8% in June 2021 involving 768,700 persons, the Department of Statistics Malaysia (DOSM) reported today in the Statistics of Labour Force, Malaysia, June and second quarter of 2021.
This is why I keep telling people that our unemployment rate is still acceptable and that the economy is still driven by the employed rather than the unemployed.
At the same time, the cash subsidies provided by the government to economically affected people will also cover many of the effects of unemployment too. But not the property affordability.
In other hand, for those who have a job, the ability to continue spending or even purchase a property is a positive sign of the Malaysian real estate market. Glad we are still okay ya, cheers~!
Let’s understand further the total transactions for 1H 2021 is close to 140,000.
Although the percentage is affected by the increase in the number of working days, we understand that the total transaction volume in 1H 2021 is close to 140,000.
In other words, 140,000 transactions (probably not 140,000 people, because some people may have purchased more than 1 property) were approved by the bank (in most cases, because even the rich are also taking loans, as it the best way to leverage on Other People Money to invest).
So, 140,000 transactions are indeed a positive number, which does not mean that the property market Malaysia is in trouble ya...
My summaries
1. Property market remain positive with the numbers of transaction.
2. Unemployment rate still not too bad so that people are keep buying today.
3. Transactions through me so far more than 3 already since we could travel and view house.
4. Many potential purchasers is trying to make their purchase before another spike in property market.
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