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One picture is worth 1,000 words? Maybe just enough to cover 2 questions?

Okay, not really a picture but more like the latest property transactions 2020 chart from National Property Information Centre (NAPIC). Today, we use this one chart to explain 2 questions many first-time home buyers have in their mind. Oh yeah, there are no links at the end of the article to buy any property yeah. There are only explanations based on one important chart from NAPIC which hopefully has revealed a lot of important overview about a year we want to forget and wish it never come back; 2020.

Question #1: 2020 must have been a bad year for property market because of COVID-19 lockdowns and shutdowns. First thing we need to note is that a total of 295,968 property transactions HAPPENED. That’s very close to 300,000. Second thing is that residential transactions alone comprise of 191,354 units. I seriously doubt this is considered a small / bad number if we have this number despite such a negative 2020.

When so many transactions happen, it has also revealed two important things. One is that people continue to have good confidence about their financial health in the foreseeable future. If we believe we may be losing our job in the near future, do we buy a property? Or even anything at all? However, if we have confidence with continuation of our job, then we would have confidence to buy a property. In 2020, close to 200,000 residential property transactions happened.

Let’s conclude that 2020 was still considered a very happening year even if there were news of shops closing, companies retrenching and malls struggling.

property transactions

Question #2: It’s super tough to get bank loans approved. The banks are in bad shape and may not want to lend. Looking at the answer for Question #1 should give us a big clue. Thus far, I only know very few people who bought a property with cash. Okay, it includes the one who bought my RM640,000 condo in Penang but other than him, I have not encountered any such buyers. From the numbers, banks are confident of these borrowers and have thus decided to lend them money. Of course, they would have managed their risks too by being more conservative.

We need to also note that if non-performing loan (NPLs) are rising fast, the banks would definitely slow down their lending. Thus far, NPLs look manageable and the full effects may have been lessened tremendously by the moratorium. In fact providing moratorium for so many months also tell us that the banks are healthy and strong. In conclusion, lending from the banks has not stopped. It’s continuing at a healthy pace. The borrower just need to make sure they qualify…

Wish for 2021?

Malaysia to hit full vaccinations within 2021 instead of beginning of 2022. That would be the catalyst for many other potential activities including bubbles.. I meant travel bubbles. MRT 3 Circle Line has also made the market excited too. Let’s hope that this one chart will become even more positive in 2021. Happy learning and deciding.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of 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. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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