Very interesting report.. Number of transactions grew by 14% but average price increase in Selangor has also moderated from 12% in 2010 to 4% in 2011!
National Property Information Centre director-general Datuk Abdullah Thalith Md Thani (left) and Lim at the launch of the Property Market Report 2011 and Property Information System Malaysia.
KUALA LUMPUR (April 4, 2012): The property market saw the highest growth in transactions in 2011 over the last five years with a total of 430,403 transactions worth RM137.83 billion, representing a 14.3% growth in volume from 376,583 transactions and 28.3% growth in value from RM107.44 billion in 2010.
Deputy Finance Minister I Datuk Donald Lim Siang Chai said last year saw several big value transactions exceeding RM5 million. They included Wisma Shun Li in Kuala Lumpur, Lanai Complex in Putrajaya, Kemayan City in Johor and East Coast Mall in Pahang.
However, the residential sub-sector continued to drive the property market, accounting for 62.7% of the total transactions recorded.
"In the primary residential market, the sales performance was in an upward trend from 2010. Almost 50,000 units were launched and out of the total, over 22,000 units were sold. Sales performance was at 46.3%. Affordable housing below RM250,000 saw high demand, making up 45% of the total new launches," he said.
Speaking at the launch of the Property Market Report 2011 and Property Information System Malaysia (PRISM-JPPH) by the Valuation and Property Services Department of the Finance Ministry, Lim said the commercial sub-sector recorded over 80% occupancy rate for purpose-built office while take-up space exceeded 250,000 sq m last year, with 40 new office buildings entering the market.
"The house price index rose 6.6% to 156.9 points during the fourth quarter of 2011. In line with that, the All House Price Index hit RM217,297 in the same quarter," he said.
"Kuala Lumpur continued to record the highest prices for all houses at RM487,219, followed by Selangor at RM327,237. The average price for terrace houses in Kuala Lumpur is RM527,113 and in Selangor, RM325,951," he said.
Lim said barring unforeseen circumstances, the property market will be good this year as the government cuts down on red tape for faster and more efficient transactions. He said an average growth of 10-15% per annum in terms of house prices is considered healthy.
He said there is no property bubble and prices are reasonable with increases in certain areas only. He added that if property prices go up, the ministry will put in place cooling measures, such as increasing the real property gains tax (RPGT) at a moderate pace.
Lim said while 43% of Malaysian households own two properties each on average, there are 20% who do not own any home.
On the overhang in commercial and office space, he said the take-up should not be an issue as more companies are keen to have their headquarters in Malaysia.
"Recently, there have been a lot of foreign buyers in Malaysia, especially those from the Middle East and China. This is a good sign," he said, adding that RM32.9 million worth of foreign direct investments were recorded last year.
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