PETALING JAYA: The property market has registered its best performance in a decade in 2024, according to the Valuation and Property Services Department (JPPH).
In its property market report, it said the volume of transactions increased by 5.4% year-on-year (y-o-y) to 420,525.
Transaction value rose by 18% y-o-y to RM232.3bil last year.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the positive performance was a sign of confidence in the industry and the public.
“The property market is a key proxy for the country’s economy. The rising number of transactions and occupancy rates indicates the initial results of the Madani government in revitalising industry activities and benefiting the people equitably,” he said at the launch of the report yesterday.
The residential segment also saw a stronger performance, increasing to 75,784 units with 37.3% sold, driven by the positive growth in units launched across almost all states.
Moreover, the overhang situation showed a better outlook with the number of unsold property units declining to 23,149 units worth RM13.94bil. This is a 10.3% and 21.2% y-o-y decrease in volume and value, respectively, compared with 2023.
Serviced apartments overhang dropped to 19,564 units, with a value of RM15.7bil, representing a 6.1% y-o-y and 5.6% y-o-y decline in volume and value, respectively.
As for the Malaysian House Price Index, it was at 225.6 points in 2024 (average price RM486,678 per unit), with a moderate annual growth of 3.3%. This was lower than 2023’s increase of 4.1% y-o-y.
In a statement, Rahim & Co International Sdn Bhd director of research Sulaiman Saheh said the total value of transactions included records based on sale and purchase agreements from primary sales by developers which may have included prices before discounts and rebates.
“Nevertheless, the record high figures, even after the adjustments, would still be significant – indicating an improved market condition,” he said.
Sulaiman also said the growth momentum seen in 2024 reflected a rising market confidence coupled with the supportive government policies and various incentives, despite global uncertainties and challenging environment.
“The performance is considered very encouraging as the buyer sentiment is still mixed and being cautious – as many continue to face the challenges of rising costs and sluggish income growth amid affordability concerns,” he added.
On the overhang situation, Sulaiman said the statistics for the dwelling units (residential, serviced apartments and small office, home offic or Soho) have shown a decline of 7.7% from the previous year, at 44,585 units worth RM30.79bil last year.
Nevertheless, the number of uncompleted unsold units that are mostly under construction had increased by 22.3%, numbering 115,674 units.
“Though these units are still actively being marketed and undergoing a sales process, we highlight the need to closely monitor how the market absorbs the incoming units to mitigate future risks of overhang, after the reducing trend since 2021,” he said.
Meanwhile, JPPH expected the growth trajectory of the property market in 2025 to be driven by sustainable transaction activities and growth in the construction sector through strategic infrastructure projects, residential sub-sectors, and non-residential buildings.
“Budget 2025 had introduced measures to stimulate demand in the property market including individual income tax relief for housing loan interest payments,” it said.