The real estate market in Malaysia experienced robust growth in the third quarter of 2023 (Q3 2023), with the total value of transactions surging by 22.6% compared to the same quarter in the previous year. This substantial increase was primarily driven by a higher number of major property sales across the country, according to data released by the Valuation and Property Services Department (JPPH).
Transaction Volume and Value:
- Transaction volume increased modestly by 3.7% year-on-year (y-o-y), reaching a total of 108,955 transactions in Q3 2023.
- The total value of real estate transactions in this period amounted to RM57.15 billion, reflecting the substantial growth in market activity.
Residential Sector Dominates:
- The residential sub-sector played a pivotal role in supporting the overall property market, contributing to 62.9% of the total transactions in terms of volume.
- In volume terms, residential transactions accounted for 68,561, with a total value of RM28.36 billion.
Terraced Houses Lead:
- Among residential property types, terraced houses led the way, accounting for 43.4% of total residential transactions.
- Housing priced at RM300,000 and below per unit continued to dominate market activities, constituting 52.4% of total transactions. Units in the RM300,001 to RM500,000 price range made up 24.7%, while units priced above RM500,000 represented 22.9%.
Rise in New Residential Launches:
- Q3 2023 witnessed a surge in new residential launches, with almost 6,900 units introduced to the market. This marked a significant increase from the 4,797 units launched in the preceding quarter (Q2 2023).
- Sales of new launches also saw a notable uptick, reaching 37.6%, compared to 24.7% in the previous quarter.
Regional Insights:
- Selangor recorded the highest number of new residential launches, accounting for 36.2% of nationwide launches, with an improved sales performance of 69.1%.
Overhang of Unsold Completed Homes:
- The overhang of unsold completed houses experienced a positive trend, with a 3.7% decrease in volume (25,311 units) and a 4.9% reduction in value (RM17.40 billion) compared to the previous quarter.
Residential Overhang Composition:
- Nearly 62.2% of the residential overhang comprised condominium or apartment units.
- Approximately 55% of the residential overhang consisted of units priced at RM500,000 and below.
Housing Price Stability:
- Housing prices in Malaysia demonstrated stability during Q3 2023, registering minimal increases.
- The Malaysian House Price Index stood at 212.6 points (RM458,751 per unit), with a small annual growth rate of 0.1%. Some states experienced moderate growth, while others saw slight decreases.
Office Space Occupancy:
- Private custom-built offices reported a slight increase in occupancy to 72.7% in Q3 2023, up by less than 1% compared to Q2 2023.
- Despite this, unoccupied office space remained high at 5.02 million square meters.
Enhancing Data Accessibility:
- The implementation of open transaction data, encompassing 12 attributes of property transaction data, allows accessibility via the National Property Information Centre’s (Napic) portal, aligning with the government’s public-sector open data initiative.
The positive growth and stability observed in Malaysia’s real estate market during Q3 2023 indicate resilience and potential for further expansion, driven by factors such as new residential launches and improved sales performance. The reduction in the overhang of unsold properties reflects a more favorable market outlook, while housing prices remain stable with minimal fluctuations. The implementation of open transaction data fosters transparency and accessibility in the property market, aligning with government initiatives to promote data sharing and openness.
