KUALA LUMPUR: Malaysia's subsale residential property demand has shown growth in the first half of 2021 (1H21), rising to 19.2 per cent from a 2.5 per cent contraction last year, said iProperty.com.my.
The portal said both unique visits and property listing supply on the platform had increased in 1H21 with visits outweighing the increase in listing supply.
iProperty.com.my general manager for customer data solution and quality Premendran Pathmanathan said it was encouraging to see recovery for the subsale residential market in 1H21.
Pathmanathan said the Covid-19 pandemic did not adversely affect the segment as it did in the first half of last year where the 1H20 demand figure dropped into the negative region.
"One of the critical factors which supported demand recovery in 1H21 is that property seekers have warmed up to the idea of conducting their property search journey online.
"Moreover, the Home Ownership Campaign (HOC) property deals have a spillover effect on the subsale residential segment as property seekers who are conducting due diligence will continue to browse sub sale homes in the same area/vicinity to compare property prices," he said.
Pathamanathan said iProperty.com.my had also seen an increase in home loan applications and positive demand for all property types.
He said the double-digit demand growth did not only represent an increase in property interest but, homebuyers also took follow-through actions as many applied for home loans in 1H21, expressing genuine purchasing interest.
"The upward trend of approved home loan applications is promising. It shows that financially able Malaysians are still interested in purchasing homes either for their own stay or for investment purposes.
"However, positive figures aside, aspiring homeowners should plan before committing to long-term borrowing, as interest rates might not stay low for long.
"A return to pre-pandemic interest rates could result in higher monthly repayments in the future," he said.
Kuala Lumpur posted an 8.1 per cent growth for 1H21 in subsale residential demand, compared to 0.3 per cent last year.
The 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.
Selangor's sub sale residential property demand grew 17.6 per cent in 1H21, mainly driven by demand for terrace houses.
Penang benefitted from rising demand for properties around its industrial hubs.
Compared to 1H20, Penang's sub sale residential property demand growth recovered from 6.5 per cent to 23 per cent due to interest in industrial areas such as Batu Kawan and Bayan Lepas, which host many tech manufacturing companies.
As for Johor, the strong local demand reinvigorated the subsale residential market there.
In 1H21, the Johor subsale residential market grew 36.5 per cent from 22.8 per cent last year.
This came mainly from local property seekers as foreign demands, especially from Singapore, remained low with international borders still closed.
Batu Pahat and Pasir Gudang became the top two most in-demand areas in Johor.