Although the findings are six months backdated as it is already August, the government agency’s figures are about as accurate as one can get about the state of the sector, down to how many transactions being done.
Most states recorded overall drop in the number of property transactions for the different sub-segments, namely, residential, commercial, industrial, agricultural, development land and others. The trend of decrease is definitively evident.
The president of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Siders Sittampalam says he is not surprised.
“It confirms what I said, that the Malaysian property market is consolidating. It is not a slump which is characterised by oversupply and declining prices,” says Siders. He is also PPC International managing director.
Based on the NAPIC report, the temperature for Kuala Lumpur, Selangor, Penang and Johor is distinctly cool.
In a nut shell, all four states recorded an overall drop in transactions with Kuala Lumpur seeing a 13.4% dive compared to the last quarter of 2013.
Penang recorded a marginal 0.3% drop while Johor, which enjoys one of the most buoyant market in the country as a result of Iskandar Malaysia, saw a 4.5% drop in transactions. Selangor had a 10% drop for the period under review.
Considering the interest in the property market the last couple of years, it can be concluded that this may be the first significant quarterly nosedive in the last four years.
NAPIC is currently analysing the second quarter numbers. Siders is not too hopeful.
“The market is not going to change a lot. The consolidation process is expected to remain for some time as there is no impetus. Positive economic conditions does not mean an immediate return of confidence in the property market. There is always a time lag,” says Siders.
