KUALA LUMPUR, Aug 24 — Demand for subsale homes in the first half of this year grew by 19.2 per cent to mark the recovery of a market battered by the pandemic, iProperty.com.my said today.
The secondary home market had contracted by 2.5 per cent in the same period in 2020 as the coronavirus outbreak put a dent on demand, but the online property portal said the start of the year yielded more positive data that suggests buyer sentiment has recovered since.
Unique visits and property listing supply on its website surged for the January-June 2021 period looking at all types of properties consisting of terrace houses, condominiums, service residences and apartments, with visits outweighing the increase in listing supply, it said in a press statement.
The subsale segment represents about 85 per cent of total property transaction volume in the country.
“It is encouraging to see recovery for the subsale residential market in H1 2021,” said Premendran Pathmanathan, the website’s general manager for customer data for solutions and quality.
“One of the critical factors which supported demand recovery is that property seekers have warmed up to the idea of conducting their property search journey online,” he added.
“Besides online property browsing, following up with property agents virtually is being accepted as the new normal.”
The value of home loan applications grew 86 per cent year-on-year (YoY) from RM96.4 billion in the first half of 2020 to RM179.4 billion in the first of this year, Bank Negara Malaysia (BNM) monthly loan application data showed.
BNM’s record low Overnight Policy Rate, at 1.75 per cent, could be among factors driving demand as consumers hunt for property bargains in a low interest rate environment, iProperty said.
The value of loans approved also increased by 92.6 per cent year on year in the same period.
“The double-digit demand growth does not only represent an increase in property interest. Homebuyers also took follow-through actions as many applied for home loans in H1 2021, expressing genuine purchasing interest,” the portal operator said.
Premendran noted the upward trend of approved home loan applications as promising.
“It shows that financially-abled Malaysians are still interested in purchasing homes either for their own stay or for investment purposes,” he said.
Landed properties firm favourite
Most aspiring home buyers still sought out landed property as it remained the top search preference, iProperty data found, with interest in terrace houses registering a 29 per cent year on year increase.
This has allowed sellers to maintain their high asking prices at 1.6 per cent, it said.
Demand for condominiums, apartments and serviced residences was also positive albeit lower with 5.2 , 11.7, and 6.8 per cent year on year increases respectively. However, oversupply of strata properties weighed down asking prices in all major states.
Kuala Lumpur posted an 8.1 per cent growth in subsale residential demand, compared to 0.3 per cent in H1 2020, while demand in Selangor grew 17.6 per cent between January and June, mainly driven by the 20.7 per cent year on year demand increase for terrace houses.
In Kuala Lumpur, asking prices in affluent areas such as Damansara Heights, Sri Hartamas, Mont Kiara and Desa Parkcity are more likely to be higher as these are prime areas for wealthy property seekers, the website operator said.
Puncak Alam and Dengkil still top the interest for terrace houses priced between RM500,000 to RM750,000 in Selangor, whereas interest in Semenyih and Sungai Long were for spacious terrace houses.
Both major subsale markets outside the Klang Valley also registered increased interest.
Penang’s subsale residential property demand growth recovered from a negative 6.5 per cent to a positive 23 per cent year on year due to interest in industrial areas such as Batu Kawan and Bayan Lepas.
Johor’s subsale market grew 36.5 per cent in the first half compared to a negative 22.8 per cent in the same period of 2020. The increase came mainly from local property seekers as foreign demand, especially from Singapore, remained low with international borders still closed.
“Landed homes are still the preferred property type in Johor, with terrace houses priced between RM300,000 to RM500,000 being the top choice,” iProperty said.
