The Bank Negara's policy on the RM250,000 cap for funding of development on new residential and shophouse units remain in force, the Budget 2001's specific policy measures were introduced to promote recovery in the property market. Through a lower ceiling rate of 3% fro stamp duty on property transfer, buyers and sellers enjoy lower cost on higher-price property transactions.

To raise worker's housing standard, the government substantially raised its eligibility housing loan amount and allowed public sector workers recourse to the resulting additional eligibility to upgrade better properties. The budget also set a new RM797 million commitment for the rehabilitation of abandoned housing projects.

In 2000, Pengurusan Danaharta Nasional Berhad (Danaharta) held three tender sales to dispose the properties originally taken over to deal with non-performing loans (NPLs). They had achieved 46.1% successes in number of properties sold, with combined of total 264 property amounting RM469.89 million. While high interest was indicated on tendered properties, significant sales were on lower-priced properties in residential and agricultural sectors as they made up 50% in total volume but only 13.2% in total value. A pick up in the interest on industrial properties contributed a high 22.3% and 25.4% in total volume and value respectively.

The Housing Developers' Association (now known as Real Estate & Housing Developers' Association) fronted a lesser involvement this year as no activity on the scale of the massive nationwide Home Ownership Campaigns organized in 1999, holding only one property exhibition to help promote house sales in the central region.

The overall property transactions for 2000 indicate a market to have firmed further with a more moderate improvement this year at 6.3% and 20.0% in total volume and value of transactions compared to previous year of 21.4% and 23.3% respectively. The total property transactions in 2000 recorded 240,068 in volume and RM41.32 billion in value compared to last year's 225,901 units and RM34.42 billion.

A large part of the transaction improvements resulted from growth in the residential sector contributing 71.2% (170,932 units) of total property transactions with 8.8% and 18.3% rises in volume and value from previous year. While other sectors were still some way off the height achieved in the pre-crisis era (1997), the residential sector drew close to 1997's level, trailing marginally of 2.7% in volume and surpassing by 0.6% in value.

With an overall improvement, only industrial and agricultural sectors suffered a 9.3% and 0.6% drop in total property transactions this year. In market share, agricultural, commercial and industrial sectors all decreased its share to 15.8%, 6.9% and 3.1% respectively.

Federal Territory of Kuala Lumpur, Selangor, Pulau Pinang, Negeri Sembilan, Perak, Melaka, Pahang, Terengganu and Sabah had registered improvements of 0.7% to 30.3% in property transactions. Perak was outstanding with 30.3% improvement after 5.1% declined previous year. While Kedah, Johor and Perlis registered 1.3% to 23.3% drops in total volume and Kelantan recorded third consecutive years of dropping.

The property priced at RM25,000 and below remained the most active with a share of 17.1% but declined from 21.4%. The category ranged from RM25,000 to RM50,000 also dropped in its share compared to previous year. While other categories picked up in their share, especially properties priced between RM100,000 to RM150,000 to 14.9% from 13.3% in 1999. The decline in RM50,000 and below was because of decline in the all sectors of the property market.