2018 Property Market

PerformanceSr NORHISHAM BIN SHAFIE

National Property Information Centre (NAPIC)Valuation and Property Services Department (JPPH)

Ministry of Finance Malaysia (MOF)

Presentation Outline

Overview

Overall Demand

Market Performance

Conclusion

1

2

3

4

Overall Demand

3

Property Market Activity

20152014 2016 2017 2018

313,710

140.33

384,060

162.97

362,105

149.89 145.40 139.84

320,425 311,824

Volume and Value of Transaction (2014 – 2018)

VOLUME

VALUE

(Units)

(RM Billion)

1

0

3

02

Tren Pindah Milik Harta Tanah

Bilangan

Nilai

2014 2015 2016 2017 2018

-

5.7%

-11.5% -2.7%

-

8.0%

-13.0% -3.8%7.0

%

0.8

%

0.6

%

0.3

%

Pergerakan bilangan dan nilai pindah milik positifselepas mengalami penurunan bagi tempoh 3 tahun

313,710384,060

362,105

320,425

311,824

RM162,974.38

RM149,897.95

RM145,408.09

RM139,839.72

1

0

3

02

Property Transaction Trend

Volume

Value

2014 2015 2016 2017 2018

-5.7% -11.5% -2.7%

-8.0% -13.0% -3.8%7.0%

0.8% 0.6%

0.3%

Positive movement after three consecutives contraction

313,710384,060 362,105 320,425 311,824

RM162,974.38 RM149,897.95 RM145,408.09 RM139,839.72 RM140,326.70

Total Transaction By Price RangePRICE RANGE RES. COMM. IND. AGRI. DEV. TOTAL

50,000 & Below 19,080 862 293 28,719 5,409 54,367

50,001 - 100,000 25,238 1,187 303 14,501 3,564 44,794

100,001 - 150,000 23,094 1,362 229 6,739 1,804 33,233

150,001 - 200,000 21,841 1,473 249 4,252 1,262 29,079

200,001 - 250,000 17,189 1,483 214 2,621 777 22,286

250,001 - 300,000 17,282 1,279 185 2,090 675 21,514

300,001 - 400,000 25,248 2,586 403 2,453 933 31,626

400,001 - 500,000 15,483 2,533 372 1,640 701 20,730

500,001 - 1,000,000 24,583 6,240 1,218 2,882 1,683 36,616

1,000,001 & Above 8,347 4,931 2,566 1,432 2,184 19,465

TOTAL 197,385 23,936 6,032 67,329 18,992 313,710

Market Share by Sub-sector

Residential62.9%

Commercial7.6%

Industrial1.9%

Agricultural21.5%

Dev. Land & Others;6.1%

Volume313,710

units

• Residential sub-sectorremained the mostdominant sector

• Capturing 62.9% of theproperty markettransactions.

Market Share by Sub-sector

Residential49.0%

Commercial21.0%

Industrial10.7%

Agricultural9.3%

Dev. Land & Others 10.0%

ValueRM140.33

billion

•Residential sub-sectormaintained leading 49.0%in value.

Market Performance

9

Residential Market – Transaction Volume (Malaysia)

2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018

Volume 269,789 272,669 246,225 247,251 235,967 203,064 194,684 197,385

% Change 18.9% 1.1% -9.7% 0.4% -4.6% -13.9% -4.1% 1.4%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-

50,000

100,000

150,000

200,000

250,000

300,000

Pe

rce

nta

ge

Vo

lum

e

Residential Market – Transaction Value (Malaysia)

2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018

Value (RM) 61,831.56 67,762.20 72,060.41 82,059.59 73,469.89 65,574.43 68,463.23 68,748.26

% Change 22.1% 9.6% 6.3% 13.9% -10.5% -10.7% 4.4% 0.4%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Pe

rce

nta

ge

RM

Mill

ion

Commercial Market – Transaction Volume (Malaysia)

2011 2012 2013 2014 2015 2016 2017 2018

Volume 43,674 41,082 34,298 35,528 31,776 23,745 22,162 23,936

% Change 9.7% -5.9% -16.5% 3.6% -10.6% -25.3% -6.7% 8.0%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Pe

rce

nta

ge

Vo

lum

e

Commercial Market – Transaction Value (Malaysia)

2011 2012 2013 2014 2015 2016 2017 2018

Value (RM) 27,636.22 27,792.10 35,561.94 31,835.06 26,399.54 35,942.60 25,439.14 29,513.57

% Change 15.9% 0.6% 28.0% -10.5% -17.1% 36.1% -29.2% 16.0%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Pe

rce

nta

ge

RM

Mill

ion

Industrial Market – Transaction Volume (Malaysia)

2011 2012 2013 2014 2015 2016 2017 2018

Volume 10,479 9,984 8,418 8,100 7,046 5,609 5,725 6,032

% Change 6.5% -4.7% -15.7% -3.8% -13.0% -20.4% 2.1% 5.4%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

-

2,000

4,000

6,000

8,000

10,000

12,000

Pe

rce

nta

ge

Vo

lum

e

Industrial Market – Transaction Value (Malaysia)

2011 2012 2013 2014 2015 2016 2017 2018

Value (RM) 11,542.23 12,005.93 12,328.57 14,509.42 11,970.76 12,018.71 11,642.37 15,012.61

% Change 17.4% 4.0% 2.7% 17.7% -17.5% 0.4% -3.1% 28.9%

-20%

-10%

0%

10%

20%

30%

40%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Pe

rce

nta

ge

RM

Mill

ion

New Launches

16

17.3%

Johor

WP Kuala Lumpur

Selangor

Residential New Launches

2017: 77,570 unit2018: 66,040 unit

34.6%(2017 : 32.6%)

Sale Performances

36.8% 29.0%

New launches By Type

2018

New Launches by Price Range2018

28.9%

Residential Priced > RM500K

24.5%

Residential Priced RM250K – RM400K

House Price Index

20

MALAYSIA HOUSE PRICE INDEX

(MHPI)

All HouseItem/ Quarter 2010 2017 2018P

Index Point 100.0 187.6 193.3

Average Price RM 217,857 404,643 416,993

Y-o-Y % 5.5% 6.5% 3.1%

2010 VS 2018P

+ 93.3 Index Point(RM199,136 diff)

DETACHEDTERRACETYPE HIGH RISE

2010 2018P

100.0 204.1

188,207 378,474

2010 2018P

100.0 172.3

381,512 658,668

2010 2018P

100.0 175.4

378,294 657,239

2010 2018P

100.0 196.2

173,713 338,698

SEMI-D

MHPI: 2010 VS 2018P

Index Point : + 104.1 Price : + RM190,267

Index Point: + 96.2 Price: +RM164,985

Index Point : + 72.3 Price : +RM277,156

Index Point: + 75.4 Proce: +RM278,945

Teracce showed highest increment in index point

QUARTER

INDEX POINT

AVE. PRICE (RM)

Market Status

23

TerminologyTerma (Term) Definisi (Definition)

Peringkat

Pembinaan

(Development

Stage)

Status

Jualan

(Sales

Status)

Tempoh Dalam Pasaran

(Period In The Market)

Tarikh Mula

(Start Date)

Harta Tanah Siap Dibina

TIDAK TERJUAL (Property

OVERHANG)

Siap dibina dengan

CCC (Completed with

CCC)

Belum dijual

(Unsold)

Melebihi 9 bulan dari

tarikh dilancar

(More than 9 months

from launching date)

Tarikh dilancar pada atau

selepas 1 Januari 1997

(Launching date at or after

1st January 1997)Harta Tanah Dalam

Pembinaan

BELUM TERJUAL (UNSOLD

Under Construction

Property)

Dalam pembinaan

(Under Construction)

Belum dijual

(Unsold)

Melebihi 9 bulan dari

tarikh dilancar

(More than 9 months

from launching date)

Tarikh dilancar pada atau

selepas 1 Januari 1997

(Launching date at or after

1st January 1997)

Harta Tanah Belum Dibina

BELUM TERJUAL (UNSOLD

Not Constructed Property)

Belum dibina

(Not Constructed)

Belum dijual

(Unsold)

Melebihi 9 bulan dari

tarikh dilancar

(More than 9 months

from launching date)

Tarikh dilancar pada atau

selepas 1 Januari 1997

(Launching date at or after

1st January 1997)

UNSOLD UNDER CONSTRUCTION

UNSOLD NOT CONSTRUCTED

51,265 UNIT

131,279 UNIT

34,174 UNIT

MARKET STATUS 2018OVERHANG

MALAYSIA UNSOLD PROPERTY

165,453 UNIT

16,366

20182014 2015 2016 2017Tahun

2018 vs 2014 213.2%

Per

atu

sP

eru

bah

an

16,576 25,362 37,210

32,313 unit @ RM19,861.92 Juta

5,055 unit @ RM4,082.53 Juta

1,183 unit @ RM1,983.30 Juta

1,343 unit @ RM669.20 Juta

11,371 unit @ RM9,161.60 Juta

Industri

ServicedApartment

Kediaman

Kedai

SOHO

Overhang In Details 2018

Overhang – Highest State

Serviced Apartment

65.8 %Residential 18.8 % JOHOR

SELANGORResidential

14.5 %

Residential

16.6%

Serviced Apartment

11.4 %

KUALA LUMPUR

PERAK

Serviced Apartment

16.7%

Residential Serviced Apartment

Johor 6,066 18.8% Johor 7,478 65.8%

Perak 5,367 16.6% KL 1,895 16.7%

Selangor 4,693 14.5% Selangor 1,297 11.4%

2018

k.

a.

b.1933

9273

8192429

863 624 746 334 593 668

14031

RESIDENTIAL OVERHANG BY PROPERTY TYPE 2018

k.

a.

b.7661411

814

1701

5915

1651

4845

2672 2428 2323

12121642

452

4481

RESIDENTIAL OVERHANG BY PRICE RANGE 2018

k.b.

256

24181300

0 63 0 13 01005 1343

11371COMMERCIAL OVERHANG BY PROPERTY TYPE 2018

k.

a.

b.

556

46394901

4601

3072

A. RM 250,000 OR LESS

B. RM250,001 -RM500,000

C. RM500,001 -RM750,000

D. RM750,001 -RM1,000,000

E. MORE THAN RM1,000,000

COMMERCIAL OVERHANG BY PRICE RANGE 2018

k.

a.

534

407

75

167

A. TERRACED B. SEMI-DETACHED C. DETACHED F.CLUSTER

INDUSTRIAL OVERHANG BY PROPERTY TYPE 2018

k.

a.

b.

8

199249

46

681

A. RM 250,000 OR LESS

B. RM250,001 -RM500,000

C. RM500,001 -RM750,000

D. RM750,001 -RM1,000,000

E. MORE THAN RM1,000,000

PRICE RANGE

INDUSTRIAL OVERHANG BY PRICE RANGE 2018

Market Inventory

34

There (3) main stages of

development and their sub-

stages as shown:

EXISTING INVENTORY

Completion

INCOMING SUPPLY

Under Construction

Starts

PLANNED SUPPLY

New Planned Supply

Completion

Under Construction

Not Constructed

Data Collection Workflow

2.7%EXISTING

STOCK MALAYSIA

EXISTING STOCK

FUTURE SUPPLY

916,776 76,133 31,882 197,348 11,974

5.6 M

Property Inventory

RESIDENTIAL SHOP SOHO SERVICED

APARTMENTS

INDUSTRY

517,337 31,882 197,348 115,397

2018

3.9%INCOMING SUPPLY MALAYSIA 0.3%PLANNED

SUPPLY MALAYSIA

Construction Activity

New Planned

Supply

INDUSTRIAL

SOHO

Completion Start

RESIDENTIAL

6.0

SERVICED

APARTMENT

SHOP

2018

93,547 -0.7% Changes

8,522

4,837

31,162

1,421

-7.4

186.2

101.4

-23.2

% Changes

-8.6

7.4

-38.0

-20.4

122,065

7,045

3,613

25,730

901

-19.9

7.9

317.2

42.0

-14.6

106,345

6,357

8,915

4,506

606

% Changes

1,009 Buildings15,965,625 sqm1 Incoming Supply 1,684,818 sqm 2

3

Existing Stock

Future Supply2,838,009 sqm

Planned Supply1,153,191 sqm

49 Buildings

29 Buildings

78 Buildings

1. Kuala Lumpur (11 buildings)2. Johor (7 buildings)3. Selangor (7 buildings)

Major contribution : 1. Selangor (22.2%)2. Kuala Lumpur (19.5%)3. Johor (13.6%) 4. Penang (10.9%).

2017 2,906,353 sqm2018 3,303,631 sqm 13.7%

Available Space (%) on Shopping Complex :

Future supply is

17.78%compared to existing

stock.

Performance of Shopping Complex Construction Activities 2018

Occupancy of Shopping Complex

84.3

71.7

82.8

73.1

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Supply & Occupancy of Shopping Complexes in Malaysia 2018

Total Space(s.m.)

Total Space Occupied(s.m.)

Malaysia's Occupancy : 79.3%

Overall Performance of Purpose-Built Office (PBO) 2018

Incoming Supply 61 Building 2,303,650 sqm

Planned Supply27 Building 774,086 sqm

Future Supply88 Building 3,077,736 sqm

(Private & Government Building)

Existing Stock

2,521 Buildings21,843,402 sqm1

2

3

4 As at 2018, a large number of future supply is coming from Kuala Lumpur with total space

1,795,149 sqm (30 buildings)

Major contribution on space 1. Kuala Lumpur (40.7%)2. Selangor (17.2%) 3. Johor (5.5%) 4. Pulau Pinang (5.1%)

Whilst space for governmentbuildings in Putrajaya (10.2%) remainsa major contributor.

2018 3,853,059 sqm 2017 3,598,220 sqm 7.1%

Available Space (%) on PBO

Future supply is 14.1%compared to existing stock.

Occupancy of Shopping Complex

79.7

74.1

75.9 84.0

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000Supply & Occupancy of Purpose Built Office

Total Space(s.m.)

Malaysia's Occupancy : 82.4%

Conclusion

42

Laman Web: http://napic.jpph.gov.my

Unsold Property Enquiry System Malaysia (UPESM)

UPESM has been launched on 17th of April 2018

Unsold Property Enquiry System Malaysia (UPESM)

Unsold Property Enquiry System Malaysia (UPESM)

Conclusion

Property market activity in 2019 is expected to stabilize judging from the marginal increase in volume and value of total transaction in 2018.

Commercial property segment will remain as the supporting sector in generating business activity and the pull-factor for investments.

As Malaysia embraces Industrial Revolution 4.0 and Digital Economy, industrial property sub-sector is expected to play a significant role generating investments and employment opportunities.

Major infrastructure projects are expected to be the catalyst for development growth in the long run though the status of the projects is still under review.

Property overhang issue needs to be thoroughly handled and a holistic measure needs to be in place.

Both Government and the property players especially the developers need to join hands in ensuring that the overhang issue will not be aggravated further.

Thank You