According to iProperty.com.my, Malaysia’s subsale residential property demand increased to +19.2% in H1 2021, up from -2.5% in H1 2020. In the first half of 2021, both unique visits and property listing supply on iProperty.com.my, which includes terrace houses, condominiums, service residences, and apartments, increased, with visits outnumbering listing supply.
iProperty.com.my H1 2021 Property Demand Analytics showcases key demand data and insights into the subsale residential market in Malaysia. This year’s edition tracks the asking prices of subsale property on iProperty.me.my, replacing transacted prices from previous editions.
Commenting on the analysis, Premendran Pathmanathan, General Manager for Customer Data Solutions & Quality, iProperty.com.my said, “It is encouraging to see recovery for the subsale residential market in H1 2021. The COVID-19 pandemic did not adversely affect this segment as it did in the first half of last year where the H1 2020 demand figure dropped into the negative region. One of the critical factors which supported demand recovery in H1 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.
Furthermore, the extension of the Home Ownership Campaign (HOC) until December 2021 is a motivator – the various HOC property deals have a spillover effect on the subsale residential segment, as property seekers conducting due diligence will continue to browse subsale homes in the same area/vicinity to compare property prices.
Increase in home loan applications and positive demand for all property types.
Bank Negara Malaysia’s (BNM) monthly loan application data, the value of home loan applications grew +86% year-on-year (YoY) in H1 2021. 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 bargains in a low interest rate environment.
Interest in terrace houses remains the highest in Malaysia with a +29% YoY increase, this has allowed 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% increase. However, the asking prices of high-rise homes in all major states have been reduced due to a high number of unsold units and as a means for sellers to attract buyers.
Strong local demand reinvigorates Johor’s subsale residential market
Johor subsale residential market experienced positive growth of +36.5% from – 22.8% in H1 2020. Landed homes are still the preferred property type in Johor, with terrace houses priced between RM300,000 to RM500,000 (1,500 sq ft to 2,000 sq ft) The increase came mainly from local property seekers as foreign demand remains low.
Batu Pahat and Pasir Gudang have risen to the top of Johor’s most popular areas. Due to its prominence as one of Johor’s industrial hubs, the region’s asking price increased by 9.61%. Meanwhile, asking prices have dropped in Iskandar Puteri, Johor Bahru, and Gelang Patah. Spacious landed houses valued up to RM1 million, on the other hand, drew a lot of attention.