Page 15 - Malaysia Builders Directory 2019/2020
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                 MALAYSIA BUILDERS DIRECTORY 2019/2020
   PROPERTY INDUSTRY OUTLOOK
 The Valuation and Property Services Department (JPPH) has projected a more stable property market in 2019 as preliminary data suggests that the value and volume of transactions are on an upward trend. JPPH director Md Badrul Hisham Awang said preliminary data gathered by the National Property Information Centre (Napic) indicates a 5.1% year-on-year increase in value for the first quarter of this year (1Q19) to RM36.97 billion from RM35.17 billion in 1Q18. The volume of transactions has also risen by 6.9% over the same period. However, reasons for the uptick have not been determined. Md Badrul Hisham said the increase could be attributed to the government’s initiatives, such as the Home Ownership Campaign 2019 and stamp duty waivers for first-time homebuyers. Citing Napic’s annual report, he added that the decline in new launches that was recorded in 2018 could have also contributed to the improved figures.
The 2018 Property Market Report showed that the number of new launches in 2018 contracted by 14.9% to 66,040
units compared to 77,570 units in 2017, with Kuala Lumpur recording a major decline of 56.1%. Conversely, the state of Johor recorded an increase of 17.3% in new launches from the previous year. Construction activities tapered slightly in 2018, with completed units reduced by 0.7% to 93,547 units against 94,198 units in 2017.
The report also showed that the streak of contractions in overall transaction volume and value, which has plagued the market in recent years, has finally been snapped. Last year, the overall transaction volume rose 0.6% to 313,710 transactions while transaction value inched up 0.3% to RM140.33 billion after three consecutive years of contraction. Although the increase may be negligible, industry experts believe the property market is finally showing signs of stabilising, which may lead to a slight recovery this year. Residential property continued to support the overall property sector with a 62.9% market share, followed by agriculture property with a market share of 21.5%.
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