REHDA: Price hikes in building materials and lesser new launches…
Transactions are up, that’s good news
Recently, the National Property Information Centre (NAPIC) published statistics showing that there were a total of 188,000 property transactions worth RM84.4 billion within the H1 2022 alone. For many years, the total transactions in the second half was higher. If we have the same trend for 2022, then it means that the total transactions would be more than just a double of the H1 2022 number.
Here’s that article in nst.com.my From the total transactions, the residential property sector recorded 116,178 transactions worth RM45.62 billion in the review period, an increase of 26.3 per cent in volume and 32.2 per cent in value year-on-year.
Penang, Kuala Lumpur, Johor and Selangor remained as the four major states, accounting for 47 per cent of the total national residential volume.
Selangor contributed the highest volume and value to the national market share with 26.5 per cent in volume (4,025 transactions), and 33.5 per cent in value (RM4.70 billion).
Here’s the full article here: Here’s that article in nst.com.my
Total launches are down and it’s a lot lower than H1 2021
According to NAPIC, there was a drop of 66.7% in new launches for H1 2022 when the new launches were compared with H1 2021. As for the sold numbers, it was almost the same, at around 20%. It was 20.3% for H1 2022 and 20.6% for H1 2021.
Real Estate and Housing Debvelopers’ Association Malaysia (REHDA) said that the industry is affected by prices hikes in building materials and also labour shortage.This has severely affected the productivity in both property and construction sectors. REHDA said, “REHDA has called upon the government to address these issues swiftly, as the current situation will be detrimental on various levels, including to purchasers. Should these issues be addressed, we believe that H2 2023 will paint a better picture for the industry and the nation as a whole.” Read the full article here:
Less launches, hike in building material prices means…?
Sorry yeah. If you think because of this, the supply would be lower and thus the demand would push prices up? Plus the pressure from cost of materials? Do look at the total transactions yeah. New property transactions are probably 15-20% of total transaction numbers yeah. So, whether prices go up or not does not depend on new properties alone. It depends on the total transactions and thus the power struggle between the seller and the buyer. I heard from some people that buyers have the upperhand. I have no idea but as an owner who wanted to sell a property in Penang, I only know that I have rejected many ‘amazing’ offers. No idea if this meant I have more power or the buyer has more power… 🙂
Always… view more. Always know more… Always benchmark before buying. Happy investing!
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