Property Market Malaysia 1H 2021: Recovering or still discovering?

Property Market Malaysia 1H2021: Recovering or still discovering?

Property Market Malaysia: Recovering in-tandem with economy

I am not rich enough to buy properties in some advanced nations. I am not even sure if the banks would lend me the money if I were to do so. It’s okay, I do think property market Malaysia has a very long journey to go and this is perfectly fine for me. I do think property market Malaysia is doing well enough despite the pandemic but since I am just a blogger, let’s have those ‘authority’ tell you what they have announced after looking through the numbers yeah.

Header image by Ivan Samkov from Pexels

NAPIC’s assessment of property market Malaysia

Article in 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 it here:  Article in theedgemarkets.com

Transactions are also up because we were comparing this to H1 2020

We need to remember that March 2020 was the first time we had the Movement Control Order yeah. We moved into more relaxation on 3rd May 2020. So, we can say that 1H 2020 was for transactions of 4 months. As for this 1H 2021, we have our Movement Control order (full lockdown) on 1st June 2021. So, it’s a total of 5 months of transactions. So, 1H 2021 vs 1H 2020, we should see the 1H 2021 showing a slightly higher number of transactions yeah.

Property remains a key sign about the state of the economy

High unemployment means a high number of people unable to even care for their living and they are not going to be thinking about buying a property of a few hundred thousands of ringgit. This is why I kept telling people that our unemployment remains acceptable and that the economy is still being propelled by the employed and not the unemployed. Meanwhile the government’s cash handouts to the ones affected financially would cover a lot of the effects from the unemployment too. As for the ones who are employed, ability to continue spending and even buying a property is a positive sign for property market Malaysia. Be happy we are still okay yeah. Cheers.

 

Just do not discount the actual transactions numbers

Meanwhile, despite the % being influenced by the higher number of working days, let’s understand that the total transactions for 1H 2021 is close to 140,000. In other words, there were 140,000 transactions (maybe not for 140,000 people since some may have purchased more than 1 property) which got the banks’ approval for loans (majority anyway since even the rich are also taking loans because that’s the best way to use people’s money to invest).  So, 140,000 transactions is indeed a positive number and does not indicate a property market Malaysia which is in trouble yeah.

Love news like this and more? Sign up for daily investment news updates. Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article: Is working in one job enough these days? How about three? 

Motion arrow towards right
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Share on twitter
Share on linkedin
Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.