KAJANG (Sept 14): The property sector has shown signs of recovery in the first half of this year (1H2022) as the economy reopened, but office and retail segments remained challenging amid a supply glut, according to the National Property Information Centre’s (Napic ) semi-annual report.
Napic said the overall overhang situation improved in 1H2022, down by 7.5% to 34,092 units from 2H2021 in terms of volume, and declined 4.6% to RM21.73 billion in terms of value.
Johor recorded the highest overhang in the country with 68.0% (15,423 units), followed by Kuala Lumpur with 18.9% (4,279 units) and Selangor’s 9.9% (2,248 units) share, Napic’s data released on Wednesday showed.
For purpose-built offices, there are over 24 million square meters (sqm) of office space nationwide as at end-June 2022, with an occupancy rate of 77.7%, down from 78.5% a year ago.
During the launch of the report, Deputy Finance Minister 1 Datuk Indera Mohd Shahar Abdullah said the supply situation for purpose-built office and shopping complexes is increasingly challenging.
“In order to paint a more positive picture to the investment prospects of the country, especially during the period of economic recovery, I urge that building owners look at more economic use alternatives, so that the use of space can be optimized,” he said .
Napic’s data also showed that the performance of shopping complexes moderated in 1H2022, with the national occupancy rate seeing a slight decline at 75.7%, as compared to 2H2021’s 76.3%.
Nevertheless, the residential property sector recorded 116,178 transactions worth RM45.62 billion in 1H2022, increasing by 26.3% in volume and 32.2% in value year-on-year, the agency said.
Overall, the property sector saw more than 188,000 transactions recorded in 1H2022, worth RM84.40 billion, equivalent to an increase of over 30% in volume and value compared to the same period last year.