PUTRAJAYA (April 1): The Malaysian property market performance improved year-on-year (y-o-y) in 2021 but total transactions remain below pre-pandemic levels recorded in 2019, according to the National Property Information Centre (NAPIC).

The year 2021 saw 300,497 property transactions worth RM144.87 billion recorded, up 1.5% and 21.7% y-o-y respectively, NAPIC said in a statement in conjunction with the release of its Property Market Report 2021.

In 2020, Malaysia recorded 295,968 transactions worth RM119.08 million, according to NAPIC’s past report.

For total transactions, the 2021 tally is still down 8.57% from 328,647 transactions in 2019. However, total transaction value in 2021 has exceeded 2019 levels of RM141.08 billion by 2.69%, records show.

For 2022, NAPIC said the property market environment “remains challenging” but sees momentum to improve on the back of the transition to the endemic phase of Covid-19, with border reopening and the lifting of restrictions expected to further improve domestic economic activities.

“As economy is set to be on the right trajectory, the property market performance is expected to be on a similar track.

“The accommodative policies, continuous government support, well execution of all planned measures outlined in Budget 2022 and the proper implementation of strategies and initiatives under [the] 12th Malaysia Plan is expected to support growth in the property sector,” it said.

According to the statement, the residential overhang situation saw volume rising 24.7% to 37,000 units worth a total of RM22.79 billion — up 20.5% from the year before.

Selangor retained the highest number and value of overhang in the country with 6,095 units worth RM5.28 billion, accounting for 16.5% and 23.2% of the national total respectively.

“Johor (6,089 units worth RM4.72 billion), Pulau Pinang (5,493 units worth RM3.56 billion) and Kuala Lumpur (3,908 units worth RM3.17 billion) followed suit,” NAPIC said.

Still, the residential sector recorded 198,812 transactions worth RM76.9 billion in the review period, up y-o-y by 3.9% in volume and 16.7% in value.

Meanwhile, the commercial sector saw 22,428 transactions worth RM27.94 billion recorded in 2021, which is a rise of 10.7% in volume and 43.1% in value as compared with 2020.

Across the board, the residential, commercial and industrial sub-sectors saw an increase in transaction volume by 3.9%, 10.7% and 17.6% respectively, while agriculture and development land sub-sectors declined slightly by 7.5% and 7.4% respectively.

“Value of transactions recorded a higher increase for residential, commercial, industrial and development land sub-sectors each at 16.7%, 43.1%, 32.9% and 33.2% [respectively] whereas agriculture recorded a decrease of 5.1%,” NAPIC said.