KUALA LUMPUR (May 15): The Malaysian property market was active in the first quarter of 2024 (1Q2024), recording a 34.3% growth compared to the first quarter a year ago, with more than 104,297 transactions worth RM56.53 billion, a 34.3% jump in transaction value.

Valuation and Property Services Department Director-General Abdul Razak Yusak said in terms of volume, property sub-sectors recorded positive growth in 1Q2024; the commercial sub-sector grew by 33.4%, residential by 16.6%, industry by 14.3%, agriculture by 13.7%, and development land and others by 10.7%.

“The residential sub-sector continues to dominate market activities with over 62,000 transactions, valued at over RM25 billion, comprising nearly 60% of overall property market activities.

“Housing priced at RM300,000 and below dominate the market with 33,500 transactions, comprising more than 50% of total transactions,” he said when presenting the 1Q2024 Real Estate Market Report in a live broadcast on Facebook on Wednesday.

According to Abdul Razak, construction activities also showed positive growth in 1Q2024 when commencements rose to more than 21,300 units, an increase of almost 8% from the previous year, while planned new developments decreased to around 11,000 units.

New residential launches increased by 19.8% to 5,585 units, from 4,661 units in 1Q2023.

The serviced apartment segment saw a 70% spike in completed units to 5,500. Projects starting construction and planned new developments each rose by more than 100% versus the same quarter in 2023.

The Malaysian House Price Index (IHRM) rose marginally by 0.5% to 216.9 points, with house prices averaging RM468,000 a unit, Abdul Razak said.

“All states recorded moderate growth of between 0.5% and 4.6%, except for Kuala Lumpur, Penang, Perak, Melaka and Sarawak, where prices contracted by between 0.2% and 2%.

“Terraced housing remained stable with a positive 1.8% growth, while other types of housing recorded a marginal decrease,” he said.

Completed unsold housing, commonly known as a residential overhang, decreased to 24,208 units worth RM16.49 billion, compared with 25,816 units worth RM17.68 billion in 4Q2023.

Serviced apartment overhang rose by 5.2% to 21,913 units, with a 9.7% rise in ringgit value to RM18.16 billion.

“Serviced apartment units priced between RM500,000 and RM1 million make up 58.1% of the total overhang,” he said.

The performance of private purpose-built offices recorded a marginal increase, he said.

“The occupancy rate of privately owned, purpose-built offices rose marginally to 72%, versus 71.9% in the previous quarter,” he said.