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Property market Malaysia may ‘look’ slow but it’s trending positively still

Want to look at some property market Malaysia numbers?

Many times, we say too many things. Sometimes, just let the numbers show the numbers. Below are some of the charts from Henry Butcher’s Malaysia Property Outlook 2021. A very comprehensive report. Here’s their full press release and you can download the full report here. As for selected slides to look at some positive signs for the market, do refer below yeah. Every slide will have a short explanation of my thoughts too.

Volume of Residential Transactions in Malaysia

property market malaysia

We can see that on a Q3 basis, 2020 was the year where the residential property transaction is showing an increasing trend versus 2019 and 2018. This could be explained with the fact that in both 2018 and 2019, the volume of residential property transactions actually increased in Q4 for both years. It would be good to have the data for Q4 2020 soon in order for us to see if a comparison of a yearly basis would also show an increase too.

The total transactions for 2018 showed a small increase versus 2017. Then, it continued in 2019 where again the total number showed another slight increase versus 2018. In other words, this trend of positive increase started in 2018, continued in 2019 and now we will wait for 2020 number.

Value of Residential Transactions in Malaysia

This is a very good chart. It is showing an adjustment in the average property price downwards for Q3 2020. The number of transactions actually went up but the value of transactions went down. The market is adjusting itself where people are buying lower priced properties. Some may also say this showed that the property price is going down but if we look at the actual change in % which is small, this is more like people buying cheaper new / primary properties instead.

Supply and Occupancy of Retail Malls in Malaysia

On an overall basis, the actual occupancy as at Q3 2018 was 79.1%. The occupancy as at Q3 2019 was 82.2% while the occupancy as at Q3 2020 was 77.4%. Looking deeper, the actual occupancy for 2020 vs 2019 was a marginal change of 0.08% (10,770 sqm). This is 13,048,640 (as at Q3 2020) sqm versus 13,059,410 sqm (as at Q3 2019). This drop in total occupancy may have been caused by effects from the COVID-19 and if Q4 2020 showed a similar trend, then I think this fall is much smaller than what everyone may have perceived from the many negative reports we read everyday.

Conclusion

This has got nothing to do with whether one should buy or sell or if one should focus on any particular area. There are also no links within this article to any property which we could buy as well. kopiandproperty.com is not a developer or a real estate agent yeah. The above is just my thoughts after looking through the charts. Everyone would definitely have their own views too. What I wanted to say is that if our perception thus far (affected by all media) has been that the residential market is in such a bad condition that it is about to collapse, then the charts above did not show those signs. This may be why waiting for that perfect property price to fall may take some time more. Happy hunting if property is your target for 2021.

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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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