KUALA LUMPUR: Malaysia's real estate market remains robust after registering 104,297 transactions valued at RM56.53 billion in the first quarter of 2024 (1Q24).

This represents a 34.3 per cent increase over the same period in 2023, which saw 89,024 transactions valued at RM42.11 billion.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the strengthening of the real estate industry in 1Q24 provides confidence that Malaysia is on the right track to achieve robust growth for 2024 and to successfully implement the national transformation outlined in the Madani Economy framework.

"The government hopes that economic planning that balances catalytic projects with inclusive development will drive long-term real estate market growth," Amir Hamzah said in a statement today.

Valuation and Property Services Department director-general Abdul Razak Yusak said the stronger performance was driven by significant increases in transactions across all subsectors, particularly the commercial subsector (up 51.5 per cent) and agricultural subsector (up 64.2 per cent).

"Continued government support, such as the extension of the stamp duty exemption period for the transfer document for first home purchases valued at RM500,000 and below until December 2025, has been a catalyst for a stronger real estate market," he said.

In terms of subsectors, commercial real estate recorded the strongest activity growth at 33.4 per cent, followed by residential at 16.6 per cent, agricultural at 13.7 per cent and development land at 10.7 per cent.

Meanwhile, the unsold completed residential properties (overhang) dropped to 24,208 units valued at RM16.49 billion from 25,816 overhang units valued at RM17.68 billion in the fourth quarter of 2023 (4Q23).

"Preliminary data for the Malaysian House Price Index (MHPI) in 1Q24 stood at 216.9 points (RM467,997 per unit) with an annual growth rate of 0.5 per cent.

"All states saw moderate positive growth between 0.5 per cent to 4.6 per cent except for Kuala Lumpur, Penang, Perak, Melaka, and Sarawak," Abdul Razak said.

Although the real estate market is improving, Abdul Razak noted that there are still risks from the global economic challenges and unpredictable external environments.

"The Madani government has introduced several initiatives and catalytic projects to drive the local economy and simultaneously stimulate real estate market expansion.

"These include improving the application conditions for the Malaysia My Second Home programme, developing the Johor-Singapore Special Economic Zone and establishing a Special Financial Zone in Forest City," he said