The performance of the real estate market in the first quarter of 2024 (Q1 2024) continues to strengthen. The number and value of transactions increased by 17.2% and 34.3% respectively to 104,297 transactions worth RM56.53 billion, compared to 89,024 transactions worth RM42.11 billion in Q1 2023.
“As one of the main engines of the country’s economic growth, the strengthening of the real estate industry in Q1 2024 gives confidence that Malaysia is on the right track to achieve strong growth for 2024 and succeed in the transformation of the country as set out in the MADANI Economy framework. The government hopes that economic planning that balances catalytic projects with inclusive development will encourage the development of the property market for the long term,” said Finance Minister II, Senator Datuk Seri Amir Hamzah Azizan.
Director General of Property Valuation and Services, Department of Property Valuation and Services, Sr Abdul Razak Yusak, said the strengthening of the real estate market in Q1 2024 was driven by a significant increase in transactions in all subsectors, especially the commercial (51.5%) and agricultural (64.2%) subsectors.
“The government’s continued support such as the extension of the stamp duty exemption period for property transfer documents for the purchase of a first home worth RM500,000 and below until December 2025 will be a catalyst for a stronger property market,” he commented.
Among other essences from the performance of the real estate market in Q1 2024 are:
- In terms of subsectors, commercial real estate recorded the strongest activity growth of 33.4%. This is followed by residential (16.6%), agricultural (13.7%) and development land (10.7%).
- Unsold completed residences (overhang) recorded a decrease in Q1 2024 to 24,208 units worth RM16.49 billion from 25,816 overhang units worth RM17.68 billion in Q4 2023.
- New residential launches increased 19.8% to 5,585 units with sales performance of 20.0%, compared to Q1 2023 which recorded 4,661 units.
- The preliminary data of the Malaysian House Price Index (IHRM) in Q1 2024 is at 216.9 points (RM467,997 per unit) with an annual growth rate of 0.5%. All states saw moderate positive growth between 0.5% to 4.6% except for Kuala Lumpur, Penang, Perak, Melaka and Sarawak.
Real Estate Market Improves Cautiously
Abdul Razak said the performance of the real estate market had improved. However, there is still the risk of global economic challenges and an unpredictable external environment.
The MADANI government has introduced several efforts and catalytic projects to drive the local economy and at the same time stimulate the development of the real estate market. These include improving the flexibility of application requirements for the Malaysia My Second Home (MM2H) programme, developing the Johor-Singapore Special Economic Zone (JS-SEZ) and establishing a Special Financial Zone in Forest City, Gelang Patah, Johor. Also supporting demand for real estate are positive development developments such as the Rapid Transit Link (RTS) project in Johor, major industrial projects in the northern region, the Pan Borneo Highway project in Sabah and Sarawak and the New Industrial Master Plan (NIMP) 2030.
