JPPH: 3Q 2024 has highest residential property transactions in 10 years!
Number of residential property transactions more accurate sign than our friend’s prediction
Until today, I continue to have many friends who continue to tell me bad news about the property market. Too many high-rise units… (as if developers can keep building landed units and price them affordably), surely the price is not sustainable…(as if everyone has bought overpriced properties like some people), that area is too far away… (as if Greater Kuala Lumpur’s population is no longer growing) and many more amazing reasons but I want to say that a better way to know what’s really happening is to look at the residential property transactions.
Why residential is because this is directly correlated to the working people and if working people are buying properties, it meant that they are confident with their earning ability. Positive sign yeah. During a financial crisis for example, even if people have money they would prefer to keep the money in the bank… So, what’s the number?
Article in themalaysianreserve.com. The country’s residential property market in the third quarter of 2024 (3Q 2024) recorded 70,520 transactions, the highest in 10 years, with a value of almost RM29 billion, an increase of 2.9 per cent in terms of number and 1.3 per cent in transaction value compared to the same period in 2023.
Valuation and Property Services Department (JPPH) director-general Abdul Razak Yusak said the residential sub-sector continued to dominate market activity, contributing more than 60 per cent of the number of property transactions in the country.
Overall, the performance of the Malaysian property market in 3Q 2024 continued to be strong, with the number and value of transactions increasing to 112,305 transactions worth RM57.31 billion, respectively.
“This strong property market performance is supported by positive growth in the number of property transactions across all sub-sectors, encouraging growth in construction activities and a consistent decline in unsold completed residential units (overhang) since 1Q 2024,” he said in a statement. Please do read the full article here: Article in themalaysianreserve.com.
Are residential property prices increasing?
According to the statistics, the answer is Yes. According to logic, it would also be a Yes. Why do I say so? Well, imagine some of us buying a property today and paying RM400,000 for it. A few years later, how likely is it that we will sell the property for less than RM400,000? Even if the so-called market is not that vibrant? This is the reason why for every property transaction, chances are the price will be moving upwards versus downwards.
Some will now argue that there are some people in financial distress who would sell lower than the market price. Yes, this is true. It happens, definitely. Let’s also include people who found a job overseas and just want to quickly sell off their property.
The only question is how many of these people who are selling cheaper properties versus the ones who would only sell their property at a higher price? That is usually reflected in the average price of property transactions. When more people are selling their properties at a higher price than people selling their property at a lower price, then the average property transaction price would move upwards. if more people are selling lower of course the average property price would go down. Simple maths yeah.
Happy viewing your dream home.
Happy investing and please do share your thoughts. Thank you!
Do not miss all the important happenings whether in property or other investments! It takes 5 seconds to sign up.
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
Alternatively, Follow me on Telegram here.
Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.
Discover more from kopiandproperty.com
Subscribe to get the latest posts sent to your email.
