Property sector recorded a strong recovery

Sales jumped 52 per cent to RM25.3 billion from a year ago, supported by the positive turn in the economy and new launches during the quarter

The property sector has recorded a strong recovery in the first three months of 2010, with sales jumping 52 per cent to RM25.3 billion compared with the same period last year.

The recovery is supported by the positive turn in the economy and new launches during the period.

"We have began to get back on track after the economic recession episode last year. This year, with the stimulus package and improving market sentiment, we expect to grow better," said Deputy Finance Minister I Datuk Wira Chor Chee Heung in Kuala Lumpur yesterday.

Some 91,979 transactions were recorded during the quarter and residential properties make-up the biggest chunk, with some 54,683 units of homes sold. This is followed by agricultural (20,44 units); commercial (9,536 units); development (5,112 units) and industrial (2,178 units).

During the first quarter of 2009 some 79,024 units of properties were sold with a total value of RM16.6 billion.

According to "Malaysian Property Market 2009" report released by Valuation and Property Services Department Ministry of Finance yesterday the Malaysian property market recorded an overall modest performance last year.

However, market value decreased by 8.3 per cent to RM80.1 billion against RM88.34 billion in 2008. Transaction volume was also lower by 0.7 per cent to 337,859 transactions compared with 340,240 transactions previously.

The residential property sub-sector continues to spearhead market transactions and recorded 211,600 transactions worth RM42 billion last year.

In comparison to 2008, this was lower in volume by 2.4 per cent or 216,702 in transaction but higher in value by 1.3 per cent or at RM41.3 billion.

A number of states recorded positive growth with Sarawak capturing 32.7 per cent of the country's total transactions followed by Selangor at 30.6 per cent and Kelantan at 29.2 per cent.

On account of fewer units being launched two years ago, primary market sales performance of new launches strengthened slightly to 48 per cent in 2009 against 44.5 per cent earlier. Out of 45,909 new units that were launched, 22,055 units were sold.

Supported by various measures announced during the recent budget such as providing new homes for the needy and the newly launched scheme using savings from Employees Provident Fund account II to purchase additional home, Chor said the property sector is well on the road to recovery.

"The Government is also looking at various ways to push Islamic REITS and so far we have seen positive development, especially from Middle Eastern investors," Chor said. - By Zurinna Raja Adam (Business Times)

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