KUALA LUMPUR: Local residential property transactions plunged 44.7 per cent year-on-year (YoY) for the first quarter (Q1) of 2021, according to PropertyGuru DataSense.
In its latest property market update report, the data analytics and solutions arm of PropertyGuru said this was due to worries over a resurgence in Covid-19 cases and softer than expected gross domestic product (GDP) performance during the quarter, owing to lower consumer confidence in the market.
The report revealed that 61.2 per cent of the overall number of property transactions across Malaysia was found to be made by first-homebuyers (FHBs).
It added that FHBs outnumbered purchases made by investors in three of Malaysia's major property markets – Klang Valley, Johor, and Penang - by 13.2 per cent, 65.2 per cent and 0.08 per cent respectively.
PropertyGuru DataSense managing director Joe Hock Thor said incentives such as the My First Home Scheme and the Home Ownership Campaign had helped to drive first-homebuyers to take that step towards homeownership during the quarter.
The report indicated that sub-sale units outsold new developments in Q1 of 2021, with many property owners selling their assets at competitive prices for liquidation, offering both FHBs and investors alike an opportunity to purchase them at below market value.
This trend was prominent in the Klang Valley, having recorded a three-year high for sub-sale transactions at 83.72 per cent.
PropertyGuru DataSense said FHBs would get a quality home in a good location on a smaller budget when buying on the secondary market.
"Sub-sale property has typically appealed to more seasoned investors largely due to the ability to place a down payment on the unit, making it easier for an investor to invest in several properties.
"The secondary market also allows greater access to property, particularly landed units, in better locations. As land banks are used up, new developments often must settle for more remote locations which may take investors a longer time to see a return on the appreciation value," said Joe.
The report also highlighted that buyers preferred landed property, contributing to the increased transactions in suburbs.
The type of properties purchased by buyers have changed as a large portion of the nation's workforce working from home since the start of the pandemic.
"This is reflected in the transaction data from Q1 2021, which found that homebuyers are favouring larger, more spacious units in the RM300,000 to RM500,000 price range.
"Buyers preferred landed units over high-rise during the quarter, with terrace houses making up 54 per cent of transactions in Malaysia followed by condominiums/apartments (18 per cent).
Joe said currently many employees no longer needed to travel to the office daily and they can opt for areas further away with lower density and more spacious layouts that could comfortably fit an extra room for a home office.
"We observed that the desire for larger, more spacious property has resulted in a shift towards terrace houses as well as properties in the fringes of city centres, driving up transactions in smaller townships in Q1 of 2021. We believe this trend is likely to continue into the second half of 2021," he added.
Many among the top 10 projects with the greatest number of transactions during quarter were in areas located away from city centres in self-contained townships such as Bukit Sentosa and Bandar Bukit Beruntung in Rawang, Bandar Putra in Kulai.