Napic confirms bumpy  ride ahead for market Napic confirms bumpy  ride ahead for market
Share this on WhatsApp The National Property Information Centre (Napic), which tracks historical transactional data to foresee market trajectory, released its Property Market Report 2015... Napic confirms bumpy  ride ahead for market

 The National Property Information Centre (Napic), which tracks historical transactional data to foresee market trajectory, released its Property Market Report 2015 this week, reinforcing the general consensus that 2016 will be a challenging year for the sector.

Overall, Napic said that transactions slowed by 5.7 per cent compared to 2014, while the total value of properties transacted dipped by 8 per cent to RM149.9 billion compared with RM162.97 billion transacted last year.

The residential sub-sector proved to be the market leader, contributing 65.2 per cent of the total volume and 49 per cent of the total value of properties transacted. Despite this, there was a 4.6 per cent dip in volume from the previous year and a fall of 10.5 per cent in the value of residential transactions.

Meanwhile, the commercial, industrial, agricultural and development land sub-sectors also registered drops of 10.6 per cent, 13 per cent, 7.5 per cent and 2.4 per cent, respectively.

There were 235,967 residential property transactions in 2015, valued at RM73.47 billion. While Kuala Lumpur and Selangor recorded moderate declines of 8.3 per cent and 5.1 per cent respectively, the drop was more pronounced in Johor (20.4 per cent) and Pulau Pinang (16.9 per cent).

 

Napic said that in line with the softening market, the number of new launches has reduced to 70,273 units, 19.2 per cent lower that in 2014. Again, there were substantial declines in Johor and Pulau Pinang, where the number of new properties dropped by 42.8 per cent and 47.5 per cent respectively.

The overall sales performance for the country hovered at 41.4 per cent (29,089 units sold), which is lower than the 39,941 units sold in 2014.

Of particular concern is the overhang of 11,316 residential units, which represents 16.3 per cent in volume and RM9.5 billion in worth. This, Napic said, was due to a high number of unsold terrace and serviced apartment units.

In the fourth quarter of 2015, the House Price Index (HPI) grew by 5.8 per cent year-on-year, which is the lowest growth rate recorded in the last five years.

However, Napic said that the property sector will endure this challenging period more effectively once corrections from both the demand and supply side come into play. — Chris Prasad

The largest transactional drop nationwide was recorded in Johor.

The largest transactional drop nationwide was recorded in Johor.

Property 360 Online

Shares