- After the recession
in 1998, the Malaysian economy recovered in 1999 with 5.4% and 4.2%
gains in the GDP and GNP respectively. Nearly all the states showed
a positive GDP growth during this year. The KLSE Composite Index
increased more than double than the level of 1st September, 1998
to reflect the return of investor confidence.
- In term of total
loan in Malaysia, the percentage of loan towards property sector
had increased from 35.1% in September 1998 to 36.8% in September
1999.
- The asset management
agency, Danaharta, established in 1998 to take over non-performing
loans (NPLs) from banking system, purchased another RM21.541 billion
worth of assets. During this year, It successfully to sell 24 properties,
totaling RM17.751 million on open tender.
- Effective from 5
January 1999, under a new policy regulation, the banking institutions
were instructed to no longer fund development on new residential
properties and shophouses priced above RM250,000 per unit to ensure
that loans are not directed to segments of property market where
supply is in excess.
- A second home ownership
campaign was held at the end of this year to help with clearing
of massive unsold properties. However, the response was moderate
as 15,164 units or 21.6% of total 70,086 units offered were taken
up.
- Judging from the
overall transaction activity, the property market of 1999 had rebounded
from the bottom performance in 1998.
- In fact the signs
of rebound in property market were already begun in the fourth quarter
of 1998.
- However, the overall
improvement did not represent the performance in every individual
section. It was more a result of the strong performance in the residential
sector.
- In term of geography,
nearly all the states showed improvement in transaction volume,
except Perak and Kelantan despite Perak emerged as the best performer
in 1998.
- Kedah and Negeri
Sembilan were outstanding in their overall transaction activity,
but it Selangor had the most balanced sectoral improvements.
- Properties priced
below RM150,000 continued to become the most popular in this year's
transaction accounting 75.8% of the total transaction volume in
1999 and 76.3% in 1998.
- Industrial sector
was the most improved section with a 71% growth.
- Residential sector
was still the most dominant sector, occupied 70% share of the total
transaction.
- Using average values
as an indicator on property prices, the figures suggested the prices
for residential and development land property moved up this year,
meanwhile commercial and industrial sectors downtrended further
and the agriculture sector maintained the level last year.
- Industrial sector
was the most improved section with a 71% growth.
- Residential sector
was still the most dominant sector, occupied 70% share of the total
transaction.
- The massive overbuilding
of office building in the past few years has led to critical oversupply,
and have worsened in 1999 with new completion. The ongoing development
such as relocation of government offices to Putrajaya and the rationalisation
caused the significant decline in occupancy.
- Sales by developers
of the total property transaction dropped to 27.7% in 1999 from
35.1% in 1998. For residential sector, transaction from individual
to individual rose slightly to 45.6 share of transaction from 44.4
in 1998.
|
Sector
|
1998 |
1999 |
Change
in % |
| Residential |
122,881
|
157,082
|
28
% |
| Commercial |
12,085
|
15,902
|
32
% |
| Industrial |
4,862
|
8,330
|
71
% |
| Agricultural |
39,857
|
38,146
|
-4
% |
| Others |
6,392
|
6,441
|
1
% |
| Total |
186,077
|
225,901
|
21 % |
| Detail
Number of Property transacted in Malaysia by Sector and Value
|
Value
|
Residential |
Commercial |
Industrial |
Agricultural |
Development |
Others |
Total |
| |
1998 |
1999 |
1998 |
1999 |
1998 |
1999 |
1998 |
1999 |
1998 |
1999 |
1998 |
1999 |
1998 |
1999 |
| 25,000
& Below |
15,690
|
25,213
|
472
|
1,826
|
228
|
1,609
|
19,416
|
17,875
|
1,564
|
1,812
|
31
|
7
|
37,401
|
48,342
|
| 25,001-50,000 |
18,631
|
24,234
|
812
|
985
|
132
|
366
|
8,411
|
8,087
|
1,078
|
1,119
|
26
|
5
|
29,090
|
34,796
|
| 50,001-75,000 |
21,433
|
24,431
|
673
|
1,114
|
111
|
129
|
3,883
|
3,915
|
553
|
628
|
28
|
6
|
26,681
|
30,223
|
| 75,001-100,000 |
20,387
|
23,330
|
735
|
927
|
152
|
498
|
2,344
|
2,645
|
449
|
396
|
12
|
3
|
24,079
|
27,799
|
| 100,001-150,000 |
20,331
|
24,987
|
1,322
|
1,634
|
419
|
718
|
2,296
|
2,174
|
526
|
524
|
23
|
6
|
24,917
|
30,043
|
| 150,001-200,000 |
11,814
|
14,256
|
1,523
|
1,977
|
577
|
813
|
1,194
|
1,239
|
381
|
336
|
12
|
8
|
15,501
|
18,629
|
| 200,001-250,000 |
5,720
|
7,521
|
1,466
|
1,658
|
585
|
676
|
596
|
570
|
198
|
230
|
3
|
8
|
8,568
|
10,663
|
| 250,001-500,000 |
7,233
|
10,601
|
3,483
|
3,670
|
1,710
|
2,188
|
1,118
|
1,114
|
609
|
566
|
19
|
13
|
14,172
|
18,152
|
| 500,001-1,000,000 |
1,167
|
1,913
|
1,195
|
1,569
|
510
|
746
|
368
|
356
|
344
|
339
|
11
|
3
|
3,595
|
4,926
|
| 1,000,001
& Above |
475
|
596
|
404
|
542
|
438
|
587
|
231
|
171
|
509
|
422
|
16
|
10
|
2,073
|
2,328
|
|
|
