The property market in Malaysia registered a stable performance in the first half of the year, with transaction values up 1.1% to MYR85.37 billion from MYR84.40 billion during H1 last year.

However, the volume of transactions revealed a minor decline of 2.1% to 184,140 for H1 2023 compared to 188,002 within the first six months of 2022, according to the country’s Deputy Finance Minister I Datuk Seri Ahmad Maslan.

“The residential property segment continued to drive the market, controlling more than 60% of the total transaction volume and nearly 53% of the total transaction value,” he commented.

“It was followed by the agriculture sub-sector with a 19.8% share in terms of volume, while in terms of value, the commercial property sub-sector was second with 19.6%,” the minister added during a speech at the launch of the National Property Information Centre’s (NAPIC) Property Market H1 2023 Report on Thursday.

Furthermore, there was caution within Malaysia’s new residential property sector between January and June, with 16,000 new units compared to 33,205 units in H1 2022. The majority of new launches were located in Johor, Selangor and Penang.

In addition, the minister said there was an improvement in the overhang situation in the residential segment over the market recovery period, with unsold units declining 5.3% to 26,286 units valued at MYR18.3 billion, from 27,746 units worth MYR18.4 billion in the second half of last year.

“Condominium/apartment units made up nearly 58% of the residential overhang, while in terms of price range, almost half were priced more than MYR500,000 per unit.

“Johor continued to have the highest residential property overhang with 4,717 units, followed by Selangor with 4,307 units.

“These states recorded overhang value of more than MYR4.0 billion each,” he stated.

In addition, Ahmad also said the performance of the country’s property market is forecast to improve during the remainder of the year, fuelled by political stability and the launch of several major national policies.

These include the Madani Economy, National Energy Transition Roadmap, Mid-Term Review of the 12th Malaysia Plan, and New Industrial Master Plan 2030.

“These policies will have a positive economic impact and contribute to the growth of the property sector,” he concluded.