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H1 2015: Malaysia Overall Residential Property Market

Everyone said the property market is down, in terms of numbers. However, no one really knows about the actual numbers. Well, time to look at some real numbers. The chart below comes courtesy of Raine & Horne and the source is National Property Information Centre (NAPIC). The Malaysian property market actually hit its peak in Q2 2011. The slowest period meanwhile was reached in Q1 2014. Q1 2015 was down versus Q4 2014 but Q2 105 has showed a slight increase. For a more in-depth numbers, do refer below.
Malaysia H1There is an overall residential property market contraction in Malaysia during the first half of 2015 as compared to the same period last year, according to the number and value of transactions figures released by National Property Information Centre (Napic).
The first half of 2014 recorded a total 122,830 transactions in the market worth a total RM40.31 billion but in comparison, the first half of 2015 only recorded 119,599 transactions which is a 2.63% contraction with a value of RM37.97 billion. If we look at the quarterly comparison, the first quarter of 2015 saw a slight increase of about 1.46 % compared to the first quarter of 2014, from 58,767 transactions (worth a total RM19.39 billion) to 59,626 transactions (worth a total RM18.74 billion).
By the second quarter, there is a noticeable contraction by 4,090 units from 64,063 transactions in 2014 to 59,973 transactions in the same  period this year or a contraction of about 6.38%. Over the years, it is normal for transactions to increase from the first to second quarter as could be seen from the increase in transactions in 2014 from 58,767 transactions to 64,063 units (worth a total RM20.92 billion) in the second quarter.
Looking at the transactions history for the previous years, the first quarter of every year will see a slight drop before the transactions spike in the second quarter. The residential property market in Malaysia hit its peak in 2011 when the second quarter of that year saw transactions spiked to a high 73,710 units (worth a total RM16.68 billion) from 60,333 transactions (worth RM13.52 billion) in the first quarter of that year.Similarly, in 2012, the first quarter saw total transactions of 64,402 units (worth a total RM15.13 billion) before it spiked up in the second quarter to 71,595 transactions (worth at total RM17.48 billion).
After the market hits peak periods between 2011 and 2012, it began to drop in 2013 and reached an all-time low in four years in the first quarter of 2014. The market picked up in the second and third quarters of 2014 by recording 64,063 transactions (RM20.92 billion)  and 63,661 transactions (RM21.66 billion) respectively.
The market again dropped to 60,760 transactions, with a total value of RM20.09 billion) in the fourth quarter of 2014 and continued to drop in the first quarter of 2015 before it increases only slightly in the second quarter of this year.
The overall residential property market in Malaysia in the last four years and the first half of this year saw the market spiking in 2011 and 2012 before it contracted in 2013 and though it increased slightly in 2014, it showed a contraction for the first half of this year.
Raine & Horne International Zaki + Partners Sdn Bhd Senior Partner Michael Geh attributed the overall contraction in the market to strict loan requirements.
“The low loan approvals due to stricter loan requirements has taken a toll on the property market,” he said.
published on 1 Nov 2015
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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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