- As expected, the performance of the
property market took a dip in both the total volume of
transactions and value by 29.4% and 32.7%
respectively.
- Residential properties remained the most
active sector followed by agriculture, commercial, industrial
and development land sectors.
- Prices of single and double storey houses remained stable,
but renovated low cost units were in good demand, pushing up
prices for this sub-sector.
- However, on the whole, prices had softened, with the
highest drops in values seen in the retail, industrial and
upmarket residential sector.
- The value of both purchases and disposals by companies
registered drops of 38. 0 % each.
- Total value of purchases by companies decreased from
RM478.39 million in 1997 to RM296.76 million, while total value
of disposals by companies recorded a lower RM 297. 10 million
this year, compared to a high RM 478.39 million in 1997.
- Due to the rather abrupt recession after an
extended period of high economic growth of the recent past,
oversupply of shops, purpose-built offices, commercial complexes
and industrial units were evident in certain areas.
- In lpoh city, overbuilding pushed down
occupancy rates of purpose-built offices and mega shopping malls
substantially. The closure of several businesses resulted
in a large number of unoccupied shop houses in the suburban
areas of lpoh, pushing down rentals by as high as 20.0%.
- Owners of terraced and semi-detached
factories were also caught by the reduced demand by tenants and
the high holding costs during the first half of the year.
- To boost up occupancy rates, rent-free
periods and other benefits were offered to attract tenants to
the several newly-completed office buildings and shopping
complexes.
- In the midst of shrinking demand, falling
prices and general lack of business confidence, developers were
very cautious in building more units. As
a result the number of units in the pipeline in all sectors were
sharply reduced.
Perak |
