It’s important to look at the median price instead of the average price when it comes to the property market. Median refers to the price which happened the most while average price usually does not make much sense when two different types of properties are combined. For example, an affordable apartment at RM200,000 plus a high-end condominium at RM1,000,000 meant an average price of RM600,000? It reflects nothing, actually.
The median price for homes in Malaysia was RM303,000 in Q3 2017. For the whole Malaysia and not just Kuala Lumpur. It (the median price) is now RM293,000 in Q3 2018. So, it has dropped. Of course this should be expected because newer launches are becoming more affordable than previously. As for the secondary market, the power is with the buyer instead of the owner except if the area is a hotspot. However, if compared to Q2 108, this has increased because in Q2 2018, the median price was RM288,000. All these prices are as per National Property Information Centre (Napic). The article in TheEdgeMarkets.com here.
Kuala Lumpur has the highest median house price at RM550,000 followed by Putrajaya (RM400,000), Selangor (RM382,000), Johor (RM345,000) and Labuan (RM325,000). As for the lower half of the spectrum, we have Kelantan (RM175,000), Kedah (RM180,000), Melaka (RM200,000), and Perlis (RM210,000). The average prices meanwhile are as follows: KL (RM772,980), Putrajaya (RM756,394; 36 transactions), Selangor (RM496,593; 7,913 transactions), Penang (RM438,379; 2,376 transactions), and Johor (RM382,820; 4,122 transactions). According to Napic, the data used to derive these figures are residential transactions submitted to the Valuation and Property Service Department by the Inland Revenue Board for stamp duty valuation purposes. The article in TheEdgeMarkets.com here.
Looking at these numbers positively, the market remains resilient even after lower transaction numbers from the peak in 2012. Imagine what would have happened if many Malaysian home owners do not have a stable job? Some would have sold their properties at fire-sale prices and the median prices would not have been so ‘sticky.’ Beyond that, we should also be very glad that all the banks did not lend indiscriminately because if they did, coupled with a slow market, it would have been a recipe for disaster. Hopefully these adjustments will continue and I do not mind prices continue to soften slowly because it has to reflect the demand from the market and as everyone knows, the market wants more affordable prices. Happy following.
written on 26 Dec 2018
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