Monday 22 Jul 2024
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KUALA LUMPUR (April 30): The average price for new apartments in Kuala Lumpur (KL) has surged to RM708,402, which is seen as surpassing the national average and setting a new benchmark in the industry, according to the real estate technology group Juwai IQI.

Average price of new apartments across Malaysia in the first quarter of 2024 was RM582,887, Juwai IQI said. Prices for new apartments in Johor also exceeded national average at RM656,648, which is in second place after KL.

Melaka, on the other hand, was the least expensive for new units with an average price of RM305,463, followed by Pahang (RM338,690), and Perak (RM343,028).

Meanwhile, the average subsale price of houses across Malaysia in the first quarter of 2024 was RM521,614, Juwai IQI said. This, as well as the average prices of new apartments in the country, are both higher than the average National Property Information Centre’s  (Napic) price of RM467,144 in 2023, it said.

The report is based on the analysis of more than 70,000 residential sales in the subsale and new project markets across Malaysia since 2018, Juwai said.

“We believe the difference lies in the mix of property tracked and in the slightly different timeframe,” the statement said.

Juwai's data for subsale units, which comprises all kinds of residential homes, sees prices in three states exceeding the national average: KL (RM801,557), Sarawak (RM572,680) and Sabah (RM526,510).

Terengganu is the least expensive place for subsale homes, with an average price of RM293,714, followed by Perak (RM322,256) and Kedah (RM323,339).

Transactions occured in lower price ranges

Commenting on transactions in 1Q2024, Juwai IQI co-founder and group chief executive officer Kashif Ansari said most purchases occured “in the lower price ranges”.

“Just over half of new unit buyers paid RM500,000 or less in the first quarter (of 2024). Only about one-quarter of buyers paid more than RM750,000 for their new unit. In the subsale market, you see a similar distribution, with nearly half of buyers spending RM500,000 or below,” he said in a statement on Tuesday.

Meanwhile, the average interest rate for a new housing loan was 4.2% at the end of year 2023, Kashif said, citing Bank Negara Malaysia (BNM).

“If a buyer puts down RM30,000 on a RM300,000 home, their monthly mortgage expense would be RM1,228 per month.

"That makes buying an affordable home significantly cheaper than the average rental, which is RM1,975. Buying an affordable home would save you RM747 per month, compared to paying the average rent,” he added.

Edited BySurin Murugiah
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