KAJANG: Malaysia's total property transaction value exceeded RM105 billion in the first half of 2024 (1H2024) with 198,906 transactions recorded, the highest growth in value and volume seen over the past five years.
Deputy Finance Minister Lim Hui Ying said that the volume of transactions increased by 8.0 per cent while the transaction value jumped 23.8 per cent compared to the same period last year.
She said the achievement was driven by strong economic growth of 5.9 per cent, provides confidences that the country is on the right track towards achieving the national economic transformation as outlined in the Madani Economy framework.
"The strengthening of the property market was driven by positive transaction performance across all subsectors, supported by various initiatives outlined by the government in Budget 2024."
"This includes up to RM10 billion in guarantees under the housing credit guarantee scheme (SJKP)," Lim said during her speech at the launch of 2024 First Half Property Market Report published by National Property Information Centre (Napic).
She added that several new efforts and catalytic projects introduced by the Madani government simultaneously stimulated the development of the property market.
These initiatives include recent improvements to the Malaysia My Second Home (MM2H) programme, the development of the Johor-Singapore Special Economic Zone (JS-SEZ), and the establishment of a Special Financial Zone (SFZ) in Forest City.
"Maintaining the overnight policy rate (OPR) at 3.0 per cent, and fiscal policies such as the extension of the stamp duty exemptions period on property transfer documents for the purchase of first-time home buyers, (worked) as a catalyst for a stronger property market," she added.
According to the 2024 First Half Property Market Report, market activity performance by subsector showed an increase, with strong annual growth in the residential subsector (6.1 per cent), commercial (22.4 per cent), industrial (2.3 per cent), agricultural (6.5 per cent), and development land (12.1 per cent).
Transaction values recorded a higher increase in all subsectors: the residential subsector (10.4 per cent), commercial (41.5 per cent), industrial (23.4 per cent), agricultural (37.8 per cent), and development land (59.3 per cent).
The performance of overhang units also showed more encouraging momentum after declining to 22,642 units worth RM14.24 billion, compared to 25,816 units worth at RM17.68 billion in the second half of last year.
The construction activity segment for residential property is promising, as all construction stages showed positive growth.
Preliminary data for the Malaysian House Price Index (IHRM) in 1H2024 stood at 218.7 points (with an average price of RM471,918 per unit), with an annual growth rate of 0.9 per cent.
All states witnessed moderate positive growth, except for Kuala Lumpur, which declined by 0.8 per cent.
By property type, semi-detached, terrace, and detached remained stable with positive growth rates of 2.6 per cent, 1.1 per cent, and 0.5 per cent, respectively, while high-rise apartments showed a marginal decline.