Slight increase in property market activity in 2021, says minister

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FREE MALAYSIA TODAY. 1ST APRIL: The property market recorded a slight improvement in performance last year but failed to surpass pre-pandemic levels, finance minister Tengku Zafrul Aziz said today.

He said the property market recorded a total of 300,497 transactions worth RM144.87 billion.

“This was an increase of 1.5% in volume and 21.7% in value compared with 2020,” he said when launching the valuation and property services department’s (JPPH) 2021 Property Market report.

Tengku Zafrul said the residential sub-sector led the overall property market activity, accounting for 66.2% of transactions.

The sub-sector recorded 198,812 transactions worth RM76.9 billion, seeing a 3.9% increase in volume and 16.7% increase in year-on-year value.
The agricultural sector was the second largest contributor to market activity at 18.9% or 56,730 transactions followed by the commercial sector (7.5%), development land (5.6%), and industrial (1.8%).

But despite the encouraging signs of recovery in the property market, Tengku Zafrul said a mismatch between supply and demand remained an issue, leaving many completed developments unsold.

He noted that the financial ability of the public to purchase property also contributed to the issue.

This “overhang” situation required thorough analysis to address, he added.

The National Property Information Centre (Napic) defines “overhang” as residential units which have received certificates of completion and compliance (CCC) but remained unsold for more than nine months after launch.