THE COVID-19 pandemic did not adversely affect Malaysia’s subsale residential property segment in 1H 2021 as it did in the same period a year ago when demand figure dropped into the negative region.
This follows revelation by iProperty.com.my today that the country’s subsale residential property demand rose to +19.2% in 1H 2021 from -2.5% in 1H 2020.
“One of the critical factors which supported demand recovery in 1H 2021 is that property seekers have warmed up to the idea of conducting their property search journey online besides online property browsing – following up with property agents virtually is being accepted as the new normal,” commented by iProperty Malaysia’s general manager (customer data solutions & quality) Premendran Pathmanathan.
“Moreover, the Home Ownership Campaign (HOC) extension until December 2021 serves as a motivation too – the various HOC property deals have a spill-over effect on the subsale residential segment as property seekers who are conducting due diligence will continue to browse subsale homes in the same area/vicinity to compare property prices.”
According to iProperty, the double-digit demand growth does not only represent an increase in property interest.
Homebuyers also took follow-through actions as many applied for home loans in 1H 2021, expressing genuine purchasing interest. Based on Bank Negara Malaysia’s (BNM) monthly loan application data, the value of home loan applications grew +86% year-on-year (yoy) to RM179.4 bil in 1H 2021from RM96.4 bil in 1H 2020.
The value of loans approved has increased by +92.6% yoy in the same period too. With the overnight policy rate (OPR) at a record low of 1.75%, many consumers are searching for property bargains in a low interest rate environment.
Interest in terrace houses remains the highest in Malaysia with a +29% yoy increase, thus allowing sellers to maintain their high asking prices at +1.6%. The demand for condominiums, apartments and serviced residences is positive albeit lower with a +5.2%, +11.7%, and +6.8% yoy increase respectively.
However, the asking prices of high-rise homes in all major states have reduced due to a high number of unsold units and as a means for sellers to attract buyers.
Kuala Lumpur posted an +8.1% growth in subsale residential demand from +0.3% in 1H 2020.
While asking prices in affluent areas such as Damansara Heights, Sri Hartamas, Mont Kiara and Desa Parkcity are more likely to be higher as these are prime areas for wealthy property seekers, property sellers in other parts of the capital city are lowering their asking prices, signalling a slight decline in holding power, according to iProperty.
The demand for terrace houses in Kuala Lumpur is robust at +27.1% with asking prices growing by +2.9%. Bangsar saw strong demand for terrace houses priced between RM1.5 mil and RM2 mil (1,500 sq ft to 2,000 sq ft).
In contrast, Taman Tun Dr Ismail attracted visitors interested in high-rise units priced between RM1 mil and RM1.5 mil (1,500 sq ft to 2,000 sq ft). – Aug 24, 2021