House prices in Malaysia continue to surge, despite anti-speculation measures.
In Q3 2013, Malaysia´s national house price index rose by 10.1% (7.8% in real terms) year-on-year. This year´s price rise, nationally, was only slightly lower than last year´s, which was 11.9% (10.4% in real terms).
Kuala Lumpur’s house price index rose especially dramatically, with nominal prices up by 14.4% (11.9% in real terms). Kuala Lumpur has the most expensive houses in the country, with an average house price of MYR 620,758 (US$ 189,342). It is followed by Sabah and by Selangor, with average prices of MYR 413,187 (US$ 126,030) and MYR 405,826 (US$ 123,784), according to the Valuation and Property Services Department (JPPH).
House prices also surged in Johor (20.4%), Pulau Pinang (14.3%), and Negeri Sembilan (6.3%). Selangor and Perak had the lowest annual price growth at 4.3% and 3.7%, respectively.
Recent anti-speculation measures are expected to lessen transactions volumes. But property prices in upcoming areas/hotspots are expected to continue rising, according to Knight Frank. Partly because the market overhang has diminished - the number of housing units launched in Q3 2013 fell to 3,736 units, 74.5% lower than the 14,662 units launched during the same period last year. The number of houses sold, relative to stock, was 18.7% in Q3 2013, up from 15.3% in Q2 2013, and 12.5% from the previous year.
