{"id":21639,"date":"2020-10-07T16:22:24","date_gmt":"2020-10-07T08:22:24","guid":{"rendered":"https:\/\/www.iqiglobal.com\/blog\/?p=21639"},"modified":"2026-01-09T16:16:06","modified_gmt":"2026-01-09T08:16:06","slug":"napic-h1-2020-report-12-things-you-should-know","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/napic-h1-2020-report-12-things-you-should-know\/","title":{"rendered":"NAPIC H1 2020 Report | 12 Things You Should Know"},"content":{"rendered":"\n

Based on the Property Market Report – H1 2020 (NAPIC),<\/a><\/span><\/strong> the pace of improvement will depend on both domestic and external factors such as political stability, global oil and commodity prices as well as further developments related to the COVID-19 pandemic. <\/p>\n

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Behind the Property Market Activity<\/b><\/h2>\n
1.The property market performance recorded a sharp decline in H1 2020: H1 2019.<\/span><\/p>\n
2. The property sector recorded 115,476 transactions worth RM46.94 billion in H1 2020.<\/span><\/p>\n
3. The residential sub-sector led the overall property market with 65.2% contribution, over 54.6% share.<\/span><\/p>\n
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How is the Residential Property?<\/b><\/h2>\n
4. There were 75,318 transactions worth RM25.61 billion recorded in H1 2020, declining 24.6% in volume and 26.1% in value – with the residential overhang continuing to increase.<\/span><\/p>\n
5. Selangor contributed the highest volume and value to the national market share, with 22.8% in volume (17,178 transactions) and 32.9% in value (RM8.44 billion).<\/span><\/p>\n
6. Sales performance was poor at 3.3%, considerably lower compared to H1 2019 (30.9%) and H2 2019 (28.4%) – due to the Movement Control Order period.<\/span><\/p>\n
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How is Commercial Property situation?<\/b><\/h2>\n
7. There were 8,118 transactions worth RM8.51 billion recorded, declining by 37.4% in volume and 33.2% in value (H1 2019: 12,962 transactions worth RM12.75 billion). <\/span><\/p>\n
8. Performance across the states slumped as all states recorded significant declines in market activity; <\/span><\/p>\n
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Selangor (1,870 transactions worth RM2.4 billion)<\/span><\/li>\n
Kuala Lumpur (1,212 transactions worth RM2.09 billion)<\/span><\/li>\n<\/ul>\n
9. The overall performance of purpose-built offices remained stable at 80.6% in the review period (H2 2019: 80.6%). <\/span><\/p>\n
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WP Kuala Lumpur and Pulau Pinang secured higher occupancy rates at 75.8% and 78.6% respectively.<\/span><\/li>\n
Selangor and Johor logged in lower than the national rate at 69.8% and 65.0% each.<\/span><\/li>\n<\/ul>\n
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Read more;<\/strong><\/p>\n
Malaysia: What is B40\/M40\/T20? Are you qualified for “Kita Prihatin”?<\/a><\/strong><\/span><\/p>\n
8 questions a first time home buyer may have for buying a house in 2020<\/a><\/strong><\/span><\/p>\n
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What is the NAPIC Outlook for 2020?<\/b><\/h2>\n
10. The NAPIC H1 2020 reporting recorded a sharp decline in the first half of 2020 (H1 2020), in consonance with the Malaysian economic performance, which contracted by 17.1% in Q2 2020 (Q1 2020: 0.7%). <\/span><\/p>\n
11. According to Bank Negara Malaysia, the Malaysian economy is expected to recover gradually in H2 2020 as the economy progressively re-opens and external demand improves – projected to experience negative growth within the range of -3.5% to -5.5% in 2020.<\/span><\/p>\n
12. Further assistance from the government such as;<\/span><\/p>\n
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Short-term Economic Recovery Plan or PENJANA <\/span><\/li>\n
Reintroduction of the Home Ownership Campaign (HOC)<\/span><\/li>\n
Real Property Gains Tax (RPGT) exemption<\/span><\/li>\n
The relaxation of the current 70% financing margin limit for third housing loan onwards<\/span><\/li>\n<\/ul>\n
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How is Property Market of Q3 is holding up?<\/h2>\n
Despite the uncertainty of the economy, the volume of units sold has risen up to 6,160<\/strong> – from 89,270<\/strong> from 83,085. <\/strong><\/p>\n
Yet, we have to bear in mind the transaction of Q3 has dropped slightly as many units have been offered discounts to discourage the property overhang situation.<\/p>\n
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Conclusion?<\/b><\/h2>\n
Despite the cautious optimism towards the nation’s projected gradual economic recovery, with the resumption of market activity under the Recovery Movement Control Order (RMCO) – the report presented by NAPIC shows the property market is more than likely to remain soft for the remaining half of 2020. <\/span><\/p>\n
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Interested to know more about the NAPIC reporting in full detail? <\/strong>Leave your details below and a member of our team will assist and answer any questions.<\/strong><\/span><\/p>\n\n\t\t\t\t\t\t