Overview by Property Sector

The property transactions for residential sector improved moderately at 8.8% and 18.3% growth in total volume and value compared to previous year's 27.8% and 32.9% growth respectively. The residential sector recorded 170,932 transactions and RM21.94 billion in total value. This was due to the negative growth in transaction volume for the states of Johor, Kedah and Kelantan against only Perak previous year. However, residential sector had recorded a higher market share of 71.2% of total transactions from 69.5%. Properties priced below RM100,000 remained the most popular amounting 58.0% of total transactions with a lower share compared to 62.0% previous year. However, properties priced between RM100,000 to RM250,000 increased its share to 33.1% from 29.8%. Generally, the prices and rentals for residential property were stable or increased. In Kuala Lumpur, the terrace houses in selected areas enjoyed 18% increase while the semi-detached and detached house in prestige areas prices pushed up to 15%. Prices for apartments and condominiums were stable. Selangor and Johor experienced the similar mixed movements. Apartment transactions in Penang recorded price improvements in almost all areas. The stock on houses nationwide increased by a lower rate of 2.2% compared to 7.7% previous year. The future supply for the year 2000 was lower due to the reduction of units under construction and in the pipeline.

The nationwide total stock increased by 13.0% with 1.19 million sm of newly completed office space this year. Klang valley made up of 55.7% of the new supply while Johor and Perak with 9.6% and 8.8% respectively. The overall occupancy rate of 76.9% was lower than previous year's 82.1%. Johor's occupancy rate improved significantly to 63.2% from previous year's 52.1%, however it remained as the lowest in Malaysia. The east coast states remained with consistently high occupancy rate for the past few years. Kuala Lumpur accounted almost half of the unoccupied space which was due to the relocation of government departments to Putrajaya. Johor, Selangor and Pulau Pinang remained with the lowest occupancy rate in the country. Generally, the rentals in the states of Kuala Lumpur, Selangor, Penang, Negeri Sembilan and Melaka were stable. In Johor, due to the existing oversupply especially in Johore Bahru and Batu Pahat, the rentals reduced as much as 30.0%.

The growth of 3.8% in total transactions and value for retail property decelerated from 31.6% and 26.2% previous year. Major states of Selangor, Pulau Pinang and Perak registered positive growth in total volume while in Kuala Lumpur, Johor, Negeri Sembilan, Perlis and Kedah dropped. Perak had the most active transactions for retail property, made up of 18.5% of the total. Followed by Selangor and Johor with market share of 18.2% and 15.4% respectively. Perak and Selangor recorded a 48.6% and 11.3% respectively while Kuala Lumpur and Johor register drops of 5.5% and 7.7% each. The buyers interests remained focus on properties between RM250,000 and RM500,000. For this price range, the retail transactions in Selangor made up 33.6% of statewide total. In Kuala Lumpur, transactions were focused on 3 to 3 ½ storey properties. In Johor, 2 to 2 ½ storey properties were the most popular, while Penang's transactions accounted 38.5% for the type 2 to 2 ½ storey properties. Prices for the conventional commercial property were mixed. In Kuala Lumpur, prices were stable in general but in some selected areas increases were substantial such as Sri Hartamas with 30% increases. Selangor had mixed performance while shophouses in Johore Bahru had price increase of 10% especially in city area. In Pulau Pinang, prices were mixed. Due to the vacancy for many units after the completion in Negeri Sembilan, the situation of oversupply was significant in many areas including Seremban, Nilai, Lukut and Port Dickson. The rental in Selangor were either stable or improved up to 56.0% for ground floor retail units of some established shopping complexes due to the high demand. In Johor, rentals softened further with some city fringe areas dropped up to 28.0% but retail building in the city centre managed to maintain the existing rate. In Negeri Sembilan especially in the town centre of Seremban, rentals decreased up to 25.0%. The overall occupancy rate for shopping complexes dropped slightly to 73.2% from 75.7% previous year. The rate for states in the country ranged from 58.2% for Pulau Pinang to 91.4% for Perlis. The almost full occupancy rates for KLCC Suria and Mid-Valley Megamall successfully pushed the rate increased by 5.1% to 78.8%.

The industrial sector registered a 9.3% fall in total transactions but a significant rise of 100.9% in total value. Kuala Lumpur, Perak, Kedah, Kelantan and Perlis registered drops in transactions volume with 14.7%, 3.1%, 89.2%, 21.4% and 57.1% declines respectively. Melaka registered the largest percentage of improvement of 54%. For capital and rental, Kuala Lumpur recorded some upward movement and in some selected areas price appreciated 10.0% to 25.0%. In Selangor, price movement varied with 1.0% - 22.0% increases and 2.0% - 31.0% drops. Prices in Johor generally declined by 10.0%. A total of 2,336 units of industrial property completed in year 2000. Selangor accounted the largest share of 63.0% (1,471 units) while Perak and Pahang each accounted 435 and 203 units respectively.

In Kuala Lumpur, most of the four and five star hotels improved their occupancy rate progressively helped by the improved businesses and support from government. The second Saturdays off policy made a significant impact, which boosted up the domestic tourism activity. Despite the moderate performances in Selangor, resort properties were improved such as Sunway Lagoon Resort Hotel, Palace of Golden Horses and Mine Resort Hotel and Spa. In Penang, due to the further 653 rooms this year the occupancy rate dipped further despite improved tourists arrivals. Generally, hotels in Johor saw an improvement but one hotel was closed down of business in 2000. In Negeri Sembilan, the hotels occupancies for Seremban recorded a higher rate than the beach hotels in Port Dickson.