Pockets of opportunities in Malaysia property in 2019
According to the Valuation and Property Services Department’s (JPPH) latest figures, the number of unsold completed residential units rose from 20,304 units to 30,115 units year-on-year as on 30 September 2018.
This represents an increase of 48.35%. Meanwhile, the total value was RM19.54 billion, representing a 56.44% jump from RM12.49 billions a year ago. If JPPH were to also include serviced apartments and small office home offices (SoHos), this would bring their overhang value to 40,916 units valued at an alarming RM27.38 billions.
Johor area has the largest number of unsold completed serviced apartments and SoHo units at 7,714 according to JPPH. JPPH notes that it rose a whopping 191% from the 2,647 units recorded a year ago. The overhang in serviced apartments is valued at RM6.16 billion, while the state’s residential overhang at RM4.44 billion. So, the total value of unsold serviced apartments is 1.5 times that of residential housing (terrace homes, semi-Ds, bungalows, townhouses, apartments and condominiums).
In summary, Johor has the highest number of completed unsold units in Malaysia at 6,053. This was a 55% increase from the 3.901 units a year ago. Penang and Selangor also recorded an increase in overhang units, up by 25.81% and 43.59%, respectively.
However:
“The local property market has held up rather well in the second half of 2018 (2H2018) and more improvement is expected in 2019,” said by Property consultancy. In a press release on its Real Estate Highlights 2H2018 report, the firm pointed out that pockets of opportunities can be found in different areas, which consists of Klang Valley, Penang, Johor Bahru and Kota Kinabalu.
Because:
On the Penang market, executive director of Knight Frank Penang, Tay Tam said the first phase of the Penang Transport Master Plan (PTMP) which made up of the Pan Island Link highway, the Bayan Lepas light rail transit (LRT) system as well as several major roads will proceed.
“The completion of the PTMP will boost connectivity, which will in turn be favourable towards the property market. Meanwhile, the residential market will likely show some signs of improvement moving forward, with outperforms being anticipated in the landed housing market,” he said.
“Also, landed houses with prices ranging from RM400, 000 to RM500, 000 are expected to fare well among home buyers,” Knight Frank Johor branch head Debbie Choy said. We can’t agree more, that it is a challenging market, the industrial property sub-sector in Johor is still expected to fare well as investments in the manufacturing and logistics sector remains at a healthy level.
In Kota Kinabalu, properties amidst a highly competitive market. There were fewer launches of residential properties as developers seek to review.
Although the residential sector is being plagued by rising supply, the continued growth of Sabah’s hospitality and tourism sector, coupled with the government’s commitment in delivering the Pan Borneo Highways are bright spots for Kota Kinabalu’s property market moving into 2019.
Moving into 2019, the residential property markets as policies announced under Budget 2019 are expected to growing demand, especially among first-time home buyers.
However, the office and retail markets are remained challenging due to elevated supply levels.
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