KAJANG: The native property market recorded greater than 300,000 transactions valued at RM145 billion in 2021, stated Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He stated this represented a rise of 1.5 per cent in quantity and 22 per cent in worth in contrast with 2020.
“The expansion was primarily contributed by the residential subsector, which accounted for almost 66 per cent of whole transaction quantity and greater than 50 per cent of total transaction worth,” he stated on the launch of the Property Market Report 2021, Klang Valley Buying Heart Rental Index and different studies printed by the Valuation and Property Companies Division (JPPH).
He famous that the residential subsector was adopted by the industrial subsector by way of worth (19.3 per cent of the full worth of transactions) and the agriculture subsector by way of quantity (18.9 per cent of whole quantity of transactions).
Tengku Zafrul stated regardless of the property market’s restoration, the problem of mismatch between provide and demand in addition to affordability have contributed to the glut of accomplished however unsold residential properties.
Stressing the necessity to research the overhang difficulty in additional depth, he known as on builders to develop initiatives based mostly on enterprise choices backed by feasibility research.
“By proper, any resolution shouldn’t be made based mostly solely on hypothesis on expectations for the property market,” the minister stated.
As an example, he famous that new property launches’ gross sales efficiency for 2021 was modest at 39.3 per cent. Residential overhang rose to greater than 36,000, with worth topping RM22 billion as at finish of 2021.
“In comparison with 2020, this was a 24.7 per cent leap by way of quantity and up 20.4 per cent by way of worth.
“A lot of the overhang properties consisting of residences priced RM300,000 and under, which made up 31.5 per cent of the full overhang,” he added.
He stated the variety of unsold serviced residences additionally confirmed a rise.
The serviced house section recorded greater than 24,000 overhang items final 12 months, up 2.9 per cent towards 2020, with a price of RM20.5 billion.
“Greater than 85 per cent of the full overhang have been for items priced at RM500,000 and above, with the bulk being in Johor,” he famous.
For the industrial sector, Tengku Zafrul stated the purpose-built places of work and enterprise complexes, which have been saddled with oversupply in the previous few years, have been additional affected following the COVID-19 pandemic.
Nevertheless, with the varied authorities initiatives below Finances 2022 together with the RM2 billion Housing Credit score Assure Scheme and an allocation of RM1.5 billion for housing initiatives for low-income earners, he urged all events concerned, together with state governments and builders, to concentrate to the information launched by JPPH via the Nationwide Property Data Heart (Napic) to make sure the initiatives being developed are in keeping with demand and have life like promoting costs. – Bernama