Kajang: Malaysia’s property market recorded stable performance in the first half of 2023 (H123), with transaction value increasing by 1.1% to RM85.37 billion from RM84.4 billion in 1H22.

However, Deputy Finance Minister I Datuk Seri Ahmad Maslan said transaction volume showed a slight decline of 2.1% to 184,140 transactions in the first half of 2023 compared to 188,002 transactions in the same period last year.

“The residential real estate segment continued to lead the market, controlling over 60% of total transaction volume and almost 53% of total transaction value.

“In terms of volume, the agriculture subsector followed with a share of 19.8%, and in terms of value, the commercial real estate subsector came in second with a share of 19.6%,” he said in a speech at the launch of the National Center. Today’s Real Estate Information Center (Napic)’s 2023 first half real estate market report.

Mr Ahmad said there was a cautious sentiment in the new residential real estate segment during the period, with more than 16,000 new launches recorded compared to 33,205 in H1 2022, with the majority of new launches in Johor, He said it was carried out in Selangor and Penang states.

He said the overhang situation in the housing sector had improved during the market recovery period, with the number of unsold units declining by 5.3% to 26,286 units (worth RM18.4 billion) from 27,746 units (worth RM18.4 billion) in the second half of 2022. The amount was equivalent to RM1 billion.

“Condominium/apartment units accounted for nearly 58% of the residential overhang, but in terms of price range, almost half were priced above RM500,000 per unit.

“Johor continued to have the highest residential overhang with 4,717 units, followed by Selangor with 4,307 units. Each of these states recorded an overhang of more than RM4 billion,” he said.

However, he pointed out that Johor managed to reduce the amount of overhang by 10.3%, while Selangor recorded an increase of 16.5% compared to the second half of 2022.

Mr Ahmad said domestic housing construction activity recorded a decline in completions, construction starts and new planned supply, which decreased by 10.4%, 1.2% and 15.8% respectively compared to the same period last year.

Selangor contributed the most number of completed units, accounting for 31.2% (8,874 units) of the national total, followed by Perak (12.8%) and Kuala Lumpur (12.7%).

At a subsequent press conference, Mr Ahmad said that with political stability and the launch of key national policies such as the Madani economy, the National Energy Transition Roadmap and the 12th Malaysia Mid-term Review, property market performance is expected to improve in the second half of 2023. He said that it has been done. Plan, New Industry Master Plan 2030.

“These policies will have a positive effect on the economy and contribute to the growth of the real estate sector,” he said. – Bernama