Sales of residential properties in Malaysia dropped in the 3rd quarter of this year to 40% from 59% in the previous quarter, according to the latest quarterly Residential Property Stock Report by the Finance Ministry.

A total of 35,430 residential units were launched in the 3rd quarter, an increase of 15.5% compared with the previous quarter.

However, all the residential types had a sales performance of below 50% and generally poorer sales performance compared with the previous quarter. Among the residential categories launched, single-storey terraced houses achieved the best performance this quarter at 47%.

Sales in most states fell except in Negri Sembilan, Pahang and Perlis. Negri Sembilan recorded the best sales performance at 61%, followed by Selangor at 59%, Terengganu 54% and Malacca 50%. The other states sold less than half of the units launched.

Residential stock in the country increased marginally by 1.2% over the 2nd quarter to 2,674,515 units. Conventional houses contributed 76% of total existing stock and the remaining were high-rise units, including serviced apartments. Terraced houses made up 41% and low-cost units 24.9% of total existing stock.

Newly completed units in the 3rd quarter increased by 24.9%, led by condominium/apartment at 21.6% (7,153 units).

Newly completed low-cost flats increased significantly by 142.3% over the previous quarter. Single- and double-storey terraced houses remained popular and together made up 36.3% (12,052 units) of the total newly completed properties.

Total incoming supply of houses declined by 1.2% to 471,835 units. Selangor continued its lead as the state with the largest incoming supply in the country with 136,979 units, but the supply fell by 4.3% compared with the previous quarter.

Total residential units under construction fell by 3.1%. Flats showed the largest reduction (5.6%) followed by single-storey terraced houses (5.3%).

Reacting to the positive growth in the residential sector in the 1st half of the year, residential units that started construction increased significantly by 42.5% over the 2nd quarter. Significant increases were noted in flats (207.9%) and single-storey terraced units (179.9%).

The total planned supply, which includes the accumulative planned supply from the 2nd quarter and the new planned supply in the 3rd quarter, increased by 4.7% to 359,077 units. There was also an increase in the new planned supply over the last quarter by 18.6%, showing confidence in the improvement in the residential sector.