Property market transactions and value fell in 1H2018

KAJANG: The property market recorded a decline in both volume and value of transactions in the first half of 2018 (1H 2018), said Valuation and Property Services Department (JPPH) director general Nordin Daharom.
Nordin, who launched the Property Market Report for First Half 2018 today, said that volume of transactions fell 2.4% to 149,889 units in 1H 2018 from 153,526 units a year ago while value of transactions fell 0.1% to RM67.74 billion from RM67.83 billion a year ago.
"The residential sub-sector continued to drive the overall market with 62.8% market share and 46.7% in value. However, this sub-sector recorded a slight decrease of 0.8% and 3.6% in the number and value respectively," he added.
The house price index rose to 189.5 points in the second quarter of 2018 from 186.3 points a year ago, with the average price rising 1.7% to RM408,774 from RM401,905 a year ago.
The increase was due to higher index point and average price recorded for terrace houses while all other types (high rise, detached and semi-detached) of houses recorded lower index point and average prices.
New residential launches fell 7.1% to 37,723 units during the six months period from 40,615 units a year ago. Sales performance was also lower at 19.2% compared with 22.4% a year ago.
The slow market absorption resulted in an increase in residential overhang totalling 29,227 units worth RM17.24 billion, reflecting an increase of 18.1% in volume and 10.2% in value.
The majority of overhang units were condominium and apartment (11,602 units or 39.7% of total overhang) priced between RM500,000 and RM1 million.
Nordin said the property market is expected to remain soft in the next couple of years.