KUALA LUMPUR: The value of real estate market transactions jumped 22.6 per cent to RM57.15 billion in the third quarter of 2023 (3Q 2023) compared with the same quarter last year due to an increase in the transfer of ownership of "major sales" in the country, according to the Valuation and Property Services Department (JPPH).

Transaction volume increased marginally by 3.7 per cent in 3Q 2023 to 108,955 compared with 3Q 2022.

Director-general Abdul Razak Yusak said the residential sub-sector continued to support the overall property market, accounting for 62.9 per cent of total transactions, or 68,561 in volume, valued at RM28.36 billion.

"This was followed by the agricultural subsector, which accounted for 18.5 per cent of total transactions, and the combination of trade subsector and other subsectors, which accounted for 18.6 per cent," he said at the online launch of JPPH open transaction data and release of the 3Q real estate market report today.

He said terraced housing accounted for 29,755 transactions or 43.4 per cent of total residential transactions.

Abdul Razak said housing priced RM300,000 and below continued to dominate market activities with 52.4 per cent share (35,948 transactions) followed by those priced from RM300,001 to RM500,000 with 24.7 per cent share (16,947 transactions) and the rest are units priced from RM500,001 and above with 22.9 per cent share (15,666 transactions).

He said new residential launches in the 3Q saw a rise of almost 6,900 units versus 4,797 units in the 2Q 2023 while sales of new launches increased to 37.6 per cent versus 24.7 per cent in the previous quarter.

New launches of RM300,000 and below dominated with over 70 per cent share (5,075 units) with a better sales performance of 44.1 per cent followed by RM300,001 to RM500,000 with 11.8 per cent (813 units) and RM500,001 and above with 14.4 per cent (993 units).

Among the states, Selangor recorded the highest number of new launches at 2,491 units, or 36.2 per cent of nationwide launches, with an improved sales performance of 69.1 per cent.

On the overhang or unsold completed houses, Abdul Razak said the situation has improved with a 3.7 per cent drop in terms of volume (25,311 units) or a 4.9 per cent reduction in value (RM17.40 billion) compared with the previous quarter.

"Almost 62.2 per cent of residential overhang comprised of condominium or apartment units and nearly 55 per cent of residential overhang are priced RM500,000 and below," he said.

He said there are more than 22,000 completed but unsold serviced apartment units valued at RM18.24 billion in the 3Q 2023, a drop in volume and value of 1.5 per cent and 4.7 per cent, respectively, compared with the previous quarter.

Of the total overhang, 61.2 per cent cost RM500,000 and above with most of them in Johor.

Meanwhile, Abdul Razak said housing prices in Malaysia have stabilised with minimal increases.

He said the Malaysian House Price Index (IHRM) stood at 212.6 points (RM458,751 per unit) with a small annual growth rate of 0.1 per cent in 3Q 2023.

"All states experienced moderate growth, between 0.1 per cent and 4.0 per cent, except for Selangor, Pahang, Kelantan and Sarawak which showed a decrease between 0.7 per cent and 1.6 per cent," he said.

He said terraced houses continued to see stable growth with a small 0.8 per cent rise while other residential types saw minimal fall in price.

Abdul Razak said private custom-built offices saw a rise in occupancy to 72.7 per cent, up by less than one per cent compared with the 2Q 2023, while unoccupied office space remained high at 5.02 million square metres. - Bernama