Property market 2024? Transactions and Prices, Up or Down yeah?
The below two charts on the Malaysia property market were shared to me by a great industry friend, Henry Heng. In my personal opinion, he is an amazing person who always share using lots of numbers. He is also able to analyze matters and share with you his opinions. He is also a Valuer, so I think his opinions will add value into property investment decisions we intend to make. Please do follow / connect with him in LinkedIn You will be able to learn a lot from his sharing.
If volume is down and only prices are up, soon it will be speculative
According to the chart, the total transactions are actually growing. In fact it is only growing slowly from 2022 to 2023 and from 2023 to 2024. Some can interpret this as a recovery. Some could interpret this as positive for the property market. Some could also interpret this growth as a very slow growth. My personal interpretation is that the market has not reached the attention of enough buyers. In other words, a lot more potential buyers may not know that the total transactions has started to increase.
5.4 percent growth is a good number lah. If this can grow by the same number for 2025, we are firmly on the road towards recovery. How about prices then? If just transactions up but price stays stagnant, what good does it have for the market?
Transactions Value is also increasing
In terms of growth percentage, it is faster than the transactions volume. If we use this to calculate the average price per transactions versus the volume, then the prices have climbed. I personally do not wish for transactions value to rise too fast because affordability is always a key to market health. If we look at the below, the trend is clear. Transactions value has been increasing since 2021, went up higher in 2022 and this continued in 2023 and now 2024 as well.
Perhaps now people can see why I tell them that prices are generally rising. They always think only the food prices are increasing. That’s not true. In fact a rise of RM5 per meal (which is a lot) is no match for just a 2 percent rise in property price of RM500,000… (This is RM10,000 per year or RM27 per day). Food prices do not rise RM27 per day yeah… So do not be too alarmed. Look at the right place instead.
More charts are coming but for now, just these two first.
Happy investing.
Happy knowing and deciding.
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