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NAPIC: Property market expected to regain momentum in 2022
The property market is expected to regain its momentum in 2022 even though the environment remained challenging, the National Property Information Centre (NAPIC) said. NAPIC is managed by the Ministry of Finance’s Valuation and Property Services Department (JPPH).
It said the Transition to the Endemic phase of COVID-19 starting April 1, 2022, would see the lifting of restrictions on business operating hours and reopening of country borders, which is expected to further improve domestic economic activities. As the economy is set to be on the right trajectory, the property market performance is expected to be on a similar track.
The accommodative policies, continuous government support, well execution of all planned measures outlined in Budget 2022 and the proper implementation of strategies and initiatives under the 12th Malaysia Plan (12MP) is expected to support growth in the property sector, it said in a statement in conjunction with the launch of its Property Market Report 2021 on Friday.
Meanwhile, NAPIC said the property market performance saw a slight improvement in 2021 but has yet to surpass the pre-pandemic level recorded prior to 2020.
It said a total of 300,497 transactions worth RM144.87 billion were recorded in 2021, an increase of 1.5% in volume and 21.7% in value compared with 2020. The residential, commercial and industrial sub-sectors saw an increase in the volume of transactions by 3.9%, 10.7% and 17.6% respectively. It also said the value of transactions recorded a higher increase for residential and commercial at 16.7% and 43.1%.
NAPIC said the residential sub-sector led the overall property market activity with a 66.2% contribution in volume. There were 198,812 transactions worth RM76.90 billion recorded in the review period. It said Selangor contributed the highest volume and value to the national market share with 24.5% in volume (48,755 transactions) and 34.4% in value (RM26.49 billion).
Kuala Lumpur recorded 11,129 transactions but ranked the second highest in value at RM9.69 billion, contributing 12.6% market share, it said. However, it said the primary market saw a lesser release of new launches with nearly 44,000 units launched in 2021 against 47,178 units in 2020.
It said the decline was expected as developers held back on the new launches due to the softening property market and increasing numbers of unsold inventories. It added that the residential overhang situation was less encouraging with volume amounting to 37,000 units worth RM22.79 billion as of year-end, an increase by 24.7% and 20.5% in volume and value respectively against 2020.