The growth of the local real estate market was mainly attributable to the residential sub-sector, which accounted for almost 66% of the total volume of transactions. ― File photo by Yusof Mat Isa

KAJANG, April 1 – The local real estate market recorded over 300,000 transactions valued at RM145 billion in 2021, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has said.

He said this represented an increase of 1.5% in volume and 22% in value compared to 2020.

“Growth was mainly driven by the residential sub-sector, which accounted for almost 66% of total deal volume and more than 50% of overall deal value,” he said at the launch of the report. real estate market 2021, Klang Valley Shopping Center Rent Index and other reports published by the Property Valuation and Services Department (JPPH).

He noted that the residential subsector was followed by the commercial subsector in terms of value (19.3% of total transaction value) and the agricultural subsector in terms of volume (18.9% of total volume). transactions).

Tengku Zafrul said that despite the recovery in the real estate market, the problem of mismatch between supply and demand as well as affordability has contributed to the glut of completed but unsold residential properties.

Stressing the need to further study the overhang issue, he called on developers to develop projects based on business decisions backed by feasibility studies.

“By right, any decision should not be made solely on the basis of speculation on the expectations of the real estate market,” the minister said.

As an illustration, he noted that the sales performance of new property launches for 2021 was modest at 39.3%. The residential overhang has grown to over 36,000, with a value exceeding RM22 billion at the end of 2021.

“Compared to 2020, this is a jump of 24.7% in terms of volume and 20.4% in terms of value.

“A large number of overhang properties consisted of residences priced at or below RM300,000, which accounted for 31.5% of the total overhang,” he added.

He said the number of unsold serviced apartments has also increased.

The serviced apartment segment recorded over 24,000 overhang units last year, up 2.9% from 2020, with a value of RM20.5 billion.

“Over 85% of the total surplus was in units priced at RM500,000 and above, with the majority being in Johor,” he noted.

For the commercial sector, Tengku Zafrul said purpose-built offices and commercial complexes, which have been struggling with oversupply in recent years, have been hit even harder as a result of the Covid-19 pandemic. 19.

However, with the various government initiatives under the 2022 budget, including the RM2 billion housing loan guarantee scheme and an allocation of RM1.5 billion for housing projects for low-income people , he urged all concerned parties, including state governments and developers, to pay attention to the data disseminated by JPPH through the National Land Information Center (Napic) to ensure that projects under development are conform to demand and have realistic selling prices. — Bernama