REVIEW ON 2020 AND OUTLOOK FOR 2021
PART 1 : REVIEW ON 2020 ( RESIDENTIAL )
In the residential property sub-sector, Perak recorded the third-highest number of property transactions in Malaysia during the first half of 2020 with a total of 14,266 transactions, contributing 12.4 per cent of the total number of transactions in the country. Nevertheless, the residential property market was already experiencing a slowdown even before the implementation of the Movement Control Order (MCO) in March 2020.
During the first nine months of 2020, Perak's volume and value of residential property transactions registered a five per cent and 14 per cent increase respectively compared to the same period in 2019. This is somewhat surprising as the lockdown imposed during the MCO was anticipated to result in a slowdown in sales activities as experienced in the other states. Moreover, the statistics show that there was a three per cent reduction in the volume and a marginal 0.7 per cent drop in the value of residential property transactions during the first nine months of 2019 compared to the same period in 2018. This anomaly is likely due to the time lag of about six months in the capture of transaction data by NAPIC.
Almost 80 per cent of the residential properties transacted in Perak in the first nine months of 2020 were those priced below RM300,000 whilst those priced under RM200,000 alone made up more than 53 per cent.
In terms of overhang properties, NAPIC's data showed that Perak had the third-highest number in Malaysia with 4,644 units. Overall, prices seemed to have eased due to the oversupply while most of the unsold properties were high-rise and high-end landed houses.
The ongoing pandemic with the recent rise in positive cases during the third wave of the virus infections continues to bear down on consumer sentiments and this has affected demand in the residential property market. The outlook for the residential property sub-sector appears to be stable in terms of prices including rental although the start of the vaccination programme could inject a sense of confidence back to the market and the market may see a recovery in the second half of the year or early next year.
Residential - Factors to watch in 2021
● Low-interest rates would be a boost for consumers looking to purchase properties.
● Reinstatement of the Home Ownership Campaign (HOC) 2020-2021 would boost demand.
Bright spots for 2021
● The Perak State Government will be building more affordable housing whilst developers have also taken note of the interest in affordable housing in the state. Upcoming developments will be focused on the affordable segment rather than high-end houses or high-rise residences.
● Towns along the West Coast Expressway such as Hutan Melintang, Teluk Intan, Manjung, Lumut, Taiping will benefit from the opening up of the highway and the better accessibility that the highway provides.
● In Ipoh, locations such as Bandar Seri Botani, Bandar Meru Raya, Klebang, Tambun, and the surrounding of the above may see an improvement in demand.
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