Sharing “Property Outlook Report 2016” from www.propertyguru.com.my.
A pretty good report and you should read it.
Here the link and it’s FREE!
Some Important & Interesting Fact From The Report:
1. In 2015, Malaysia’s property sector continued to see a downward trend of
reducing transactions and for the first time in several years, reducing sales value.
2. Out of 10,877 units launched (10,550 residential units) across Malaysia, only
4,373 or 40% found buyers. A large number of the unsold units were mostly in
Penang, Greater KL and Johor. Most unsold stock was mainly in the RM500,000
to RM1mil price range.
3.Loan rejections increased to 35% of total applications – a 6% increase from
29% in the previous half. Most rejections were for properties priced between
RM250,000 -RM500,000, followed by those between RM700,000 and RM1 million.
4.In 2015, Malaysia’s property sector continued to see a downward trend of reducing sales volumes (transactions). For the first half of 2015, volume of transactions numbered 186, 661 while transaction value had decreased to RM76.609 billion. This indicates that booth prices and demand has tapered off.In addition, house prices had also decreased – the first time in many years. The Malaysian
Housing Price Index (MPHI) decreased significantly.In previous years, transactions dropped but values continued to rise indicating that house
prices were still on the rise. There was also still a buying public supporting the market.This is not the case anymore for 2015.
5.Number of residential units sold in Selangor and KL both reported a significant drop of 5.6% and 21.3% respectively from Q4 2014 to Q1 2015. Value of transactions on average decreased by 5.4% in Selangor and 22.8% in KL respectively across the board for all residential property types.
6. Developers have begun to increasingly adopt the smaller unit model for strata developments within the city centre as well as key urban areas. About 55% of residential transactions in Greater KL were for homes below RM500,000.
7.Greater KL is considered the most expensive place to buy a property with the lowest affordability ratios alongside Penang.
8. Oversupply of properties especially in the high-end condominium market.
9. MRT has certainly had an effect on properties located within a 1KM radius.
10. In essence, 2016 will be very much a buyers and renters market with plenty of bright spots and plenty of opportunities, especially in the secondary market.
11. In 2016, the property market is expected to continue with its downtrend for the first half of the year, before recovering or stabilising within the second half.
12. Prices in general are expected to come down slightly as would transaction volumes.There of course, will be certain properties in prime areas (i.e. near the MRT, etc.) thatwill continue to appreciate.
13.With speculators having virtually been totally removed from the market, the year would be driven by more genuine demand – that of owner-occupiers and long-term investors,which would help build a more sustainable, resilient and realistic market.
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