House Price Index Remains on Negative Trend in Q1 2022

March 24, 2024
Malaysia


The Malaysian House Price Index recorded a -2% quarter-on-quarter (QoQ) reduction in the first quarter of 2022, according to NAPIC’s property market snapshot. 

The negative growth rate in prices represented a –0.1% year-on-year (YoY) change when compared to the first quarter of 2021. 

Median house prices however have reached RM 433,430 this quarter, a 96.9% growth since the base year price of RM 220,154 in Q1 2010. 

Only high-rise properties showed a positive change in average prices, growing by 0.1% QoQ to RM 342, 176. The average price of terrace houses dipped by –2.2% this quarter to RM 410,527 while semi-detached homes dropped -2.6% to RM 660,636. 

Detached home prices recorded the biggest dip of the property types listed. Median prices fell -4.1% to RM 617,678. 

As for market activity, a total of 94,544 units were transacted in the first quarter of this year, representing a marginal –4.9% drop from the previous quarter. 

In contrast, property transactions spiked by 62.3% (to 99,462 units) in Q4 2021 compared to the third quarter of the year due to the reopening of economic activity and the ending of the Home Ownership Campaign (HOC). 

As usual, residential transactions made up the bulk of the total value and volume of transactions. 

61.1% (57,750 units) of transactions in the last quarter were for residential properties while commercial and industrial transactions made up only 7.9% and 1.9% of the total respectively. 

The second biggest share was for agricultural transactions (22.9%) and the remaining sum (6.2%) was attributed to development land and other purposes. 

The value of transactions also dropped to RM 41.91 billion from RM 46.85 billion in Q4 2021 as seen in NAPIC’s previous report. 

Residential transactions made up 54.8% of the total transaction value in Q1 2022 at RM 22.98 billion. This was followed by commercial transactions at RM 7.26 billion (17.3%) and industrial transactions at RM 5.11 billion (12.2%). 

The residential overhang has also dipped modestly to 35,592 units at a value of RM 22.45 billion. The volume of residential overhang peaked at an ‘all-time high’ last year, having reached 36,863 units at a value of RM 22.79 billion. 

The serviced apartment overhang dropped from 24,295 units to 24,050 units last quarter. However, the value of overhang units remained the same at RM 20.45 billion. 

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