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ON FRIDAY

MAY 1, 2015

purchasers and industry

players, due to post-GST

implementations. However,

themarket is expected to

self-adjust in due course and

domestic demand is

predicted to remain the key

driver of the country’s

economic growth. These are

backed by the continuous

expansion of activity in the

private sector.

Other than the 0.7% rise

in construction activity and

the uptrend period it has

enjoyed across the sub-

sectors, marginal growth in

the residential sector

is also derived from the

loans approved and

disbursed.

CSI stood at 83% at Q4 of

2014, the lowest recorded

throughout the year due to

precautionary sentiments recorded

within households on finances,

growing concern regarding

employment and an indefinite

financial outlook.

MIER’s BCI recorded a 86.4% for

the same period, but this was due to

the depreciation of the ringgit and

falling oil prices which influenced

the level of confidence in the

commercial property sub-sector

where volume grewmarginally, but

value dropped.

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X

PropertyMarket Report 2014

>Market outlook as released by the Valuation and Property Services Department

T

HERE

is a belief that one

should look back and

learn from the past in order

tomove forward. With this,

we look at last year’s property

market report (just released), to be

armed and ready for the challenges

to be expected. In our property

column this week, we share a

general summary, followed by a

more detailed outlook on how the

residential sector will fair, new

launches, up-coming areas and the

forecast for 2015.

2014 OVERVIEW

On the whole, the 36th Property

Market Report by the said

government department declared

in its report that the property

market in 2014was slightly better

than the previous year, andwas in

tandemwith the country’s

economic growth. Real estate

transaction rose by 0.8% in volume

while total transaction in value

improved by 7%.

The residential continued to

dominate the sector, taking up

64.4%of the overall market share.

Performance of the sub-sector

market was maintained, due to the

increase in transaction volume,

additional new launches in the

primarymarket, declining overhang

andmore construction activities.

The government’s involvement

PART1

PROPERTYMARKET ACTIVITY

A total of 384,060 property

transactions were recorded for 2014,

amounting to RM162.97 billion. On

the whole, the residential,

commercial and agricultural sub-

sectors recorded growthwhile the

industrial and development land

sub-sectors recorded a slight

downturn. However, value of

transactions moved independently,

with residential, industrial and

development land sub-sectors

recording double-digit growths.

The prime sub-sector showed a

sustainedmarket – a slight

turnaround inmarket activity,

moderate performance for new

launches, improved overhang

situations and a positive trend in the

construction sector.

According to the report, prices

and rentals remained firmalthough

signs of pricemoderating were seen

in the All House Price Index.

There were 247,251 transactions

worth RM82.06 billion recorded in

the reviewperiod. Residential

continued to drive theMalaysian

propertymarket.

Followour column next week for

more insights into the property

market report for 2014.

supplying affordable homes and

incentives for first-time home

buyers also helped to ensure the

sustainability of the sub-sector,

apart from its efforts to curb

speculating activities and price

increase (bymoderating the

MalaysianHouse Price Index).

Coolingmeasures enforced in the

last two years also helpedmoderate

themarket by giving it a lift in 2014.

In the commercial sub-sector,

market activitywas reported to be

moderate, on the account of less

favourable Business Conditions

Index (BCI) and Consumer

Sentiment Index (CSI). However,

the retail and office sub-sector

delivered a slightly better

performance, a slight increase

from79.5% to 81.4% and 82.9%

to 84%, respectively.

According to the Finance

Minister II Datuk Seri Ahmad

Husni Hanadzlah, themarket in

2015 is expected to bemoderate.

Various reactions are expected

among developers, home