KUALA LUMPUR, April 29 — The Malaysian property market is expected to remain resilient despite the economic headwinds this year due to COVID-19, with affordable housing and finding the right solutions to the property overhang continuing to be the main agenda of the government.
Valuation and Property Services Department Malaysia (JPPH) in a statement today said the close monitoring of the implementation of programmes under the National Housing Policy 2.0 (2018 – 2025) and various incentives introduced to promote home ownership among Malaysians are expected to contain the overhang situation in the coming year.
“As Bank Negara Malaysia expects the Malaysian economy to rebound in 2021, in tandem with projected global recovery, the property market is anticipated to move in similar trajectory.
“JPPH Malaysia will continue to monitor and evaluate the expected impact of the pandemic on the Malaysian property market and provide advisory to the government in ensuring that the market remains sustainable,” it said in conjunction with the launch of nine reports, including Malaysia Property Market 2019.
JPPH said there may be high near-term downside risks resulting from the unforeseeable outbreak of COVID-19 worldwide, which may dampen the anticipated economic growth, particularly for the first half year of 2020.
It said the globally-affected outbreak is expected to take its toll on the world economies and the Malaysian economy, in particular tourism-related sectors such as airlines, retail, food and beverage and hospitality; as well as the manufacturing and selected services sectors.
“The magnitude of the impact on the Malaysian economy would depend on the duration and spread of the outbreak not only in Malaysia but also in other countries, especially those that are Malaysia’s major trading partners.
“Many incentives are given by the government in the effort to cushion the impact on the property market. However, given the challenging market coupled with the downside in consumer and business community confidence, market activity and market absorption are likely to be slow,” it said.
The other reports launched by JPPH today include Property Stock Report 2019, Property Market Status Report 2019, Malaysian House Price Index 2019, Commercial Space Availability Report 2019, Purpose-Built Office Rental Index (PBO-RI) Klang Valley, Johor Bahru & George Town 2019, Residential Prices Quarterly/ Yearly Update 2019, RM10 Million Transaction Property Deals Volume 16 and Estate Land Sales Report Volume 26.
The reports indicate that the property market recorded a marginal improvement, with a total of 328,647 transactions worth RM141.40 billion recorded in 2019, 4.8 per cent higher in volume and 0.8 per cent higher in value compared with 2018, which recorded 313,710 transactions worth RM140.33 billion.
“Sectoral market activity performance improved marginally – residential (6.0 per cent), commercial (7.2 per cent), industrial (3.8 per cent) and agricultural (2.0 per cent) with the exception of the development land sub-sector, which declined slightly by 1.2 per cent.
“The residential sub-sector led the overall property market, with a 63.7 per cent contribution,” it added.
— BERNAMA