Property Market Likely to Stay Flat

PUTRAJAYA: For first half year of 2020, Malaysian property sector is slightly increase level of residential overhang. It is expected the property market will be remain soft in 2020 reason of uncertainties created by Covid-19 pandemic.  

From the report of National Property Information Centre (Napic) said, the Malaysian property market rate of recovery will depend on both local and external factors in first half of 2020.

At the 2020 National Housing and Property Summit last week, KSI Strategic Institute of Asia Pacific president Tan Sri Michael Yeoh said the property sector needs to embrace innovation including artificial intelligence, big data and robotics.

According to Napic, the residential overhang in the country increased by 3.3% to 31,661 units valued at RM20.03bil in the first half of 2020, compared with 30,664 units valued at RM18.82bil in the previous corresponding period, due to slow market absorption of the primary market.

The number of new launches in the first half of 2020 dropped 43.6% to 13,294 units, compared with 23,591 units in the previous corresponding period.

The overall property sector meanwhile recorded 115,476 transactions worth RM46.94bil in the first half of 2020, a decrease of 27.9% in volume and 31.5% in value compared with the first half of 2019, which recorded 160,165 transactions worth RM68.53bil.

Maybank Investment Bank Research in a recent report cautioned that a much weaker economy due to rising job cuts and business closures, as well as more auctioned properties, may stifle the effects of the stimulus.



Source: TheStar