The Malaysian property market would remain on an uptrend this year despite the expected weaker economic growth due to the uncertain external variables, said Deputy Finance Minister II Steven Sim.

He said in his speech at the launch of the 2022 real estate market report that the market will be supported by the implementation of the measures contained in the revised Budget 2023, policies, and initiatives under the 12th Malaysia Plan.

The text of his speech was read by Valuation and Property Services Department director-general Abdul Razak Yusak.

According to the report, the property market recorded over 389,000 transactions worth RM179.0 billion in 2022. This was an increase of 29.5 per cent year-on-year (y-o-y) in terms of volume and a 23.6 per cent y-o-y rise in value.

The residential sub-sector led the overall property market activity, with 62.5 per cent contribution in volume.

There were 243,190 transactions for residential properties worth RM94.28 billion recorded last year, an increase of 22.3 per cent in volume and 22.6 per cent in value y-o-y. Driving growth was the uptrend seen in Penang (31.1 per cent), Johor (24.3 per cent), Perak (18.9 per cent), Kuala Lumpur (18.4 per cent), and Selangor (15.9 per cent).

The commercial property segment recorded 32,809 transactions worth RM32.61 billion last year, a growth of 46.3 per cent in volume and 16.7.per cent in value compared to 2021.

Meanwhile, the report stated that the residential overhang numbers declined to 27,746 units valued at RM18.41 billion as of the fourth quarter of 2022, down by 24.7 per cent and 19.2 per cent in volume and value, respectively, compared with 36,864 units worth RM22.79 billion in the same period in 2021.

Johor had the highest number and value of overhang in the country with 5,285 units worth RM4.33 billion, accounting for 19.0 per cent and 23.5 per cent of the national volume and value respectively. This was followed by Selangor (3,698 units worth RM3.36 billion), Penang (3,593 units; RM2.74 billion) and Kuala Lumpur (3,429 units; RM3.15 billion). Nevertheless, the overhang volume in all four states fell by 13.8 per cent, 39.3 per cent, 34.6 per cent, and 12.2 per cent respectively compared to 2021.

According to the report, there was a drop in the overhang volume due to the take-up of properties in the affordable price bracket of below RM300,000.

The occupancy rate for retail centres decreased from 76.3 per cent in 2021 to 75.4 per cent in 2017.

While Johor and Penang earned an average occupancy of 68.8 per cent and 72.6 per cent, respectively, Kuala Lumpur and Selangor registered 77.5 and 82.7 per cent above national occupancy rates.

Both Negeri Sembilan and Melaka had occupancy rates that were among the lowest in the nation, with 66.6 per cent and 61.2 per cent, respectively.

Hotel occupancy rates increased to an average of 46.6 per cent from January to September 2022, up from 21.8 per cent in 2021. The typical occupancy rate was roughly 60 per cent before the outbreak.