Four states primary contributors to property transactions in 2018

Last update: 17/05/2019

KUALA LUMPUR, May 17 (Bernama) -- Johor, Penang, Kuala Lumpur and Selangor continued to be the primary contributors to property transactions in 2018, as they accounted for 75 per cent of loans for property purchases, said PropertyGuru Malaysia.

Country manager Sheldon Fernandez said asking prices generally trended downwards or sideways in the first quarter of 2019 (1Q19), as the market adjusted to larger economic tides. 

However, the Johor, Penang and Kuala Lumpur markets registered marginal quarter-on-quarter increases of up to 0.5 per cent, in line with the states’ positions as the focus for national development.

"Location-wise, the PropertyGuru Market Index 1Q19 report found a high demand for affordable properties in Klang and Shah Alam. 

"This demand is catalysed by the upcoming Light Rail Transit (LRT) Line 3 alignment, linking these areas to the city centre," said Fernandez in a statement today. 

In terms of property types, he said more Malaysians were interested in landed, semi-detached and mixed use projects, while interest in terrace houses, condominium, flats/ apartments and bungalow properties was declining.

“With the recent economic trends and the new government, we are also seeing positive developments and a stable employment market.

“Nevertheless, home ownership is still a far cry for many as there is still a demand-and-supply mismatch, as reflected by the overall trendline decline in the PropertyGuru Market Index,” Fernandez added.

In 1Q19, the PropertyGuru Market Index stood at 85.4, down from 85.6 in 4Q18, indicating dampened sentiment on the part of sellers, with asking prices moving downward in the mid-term and sideways in the short-term.

PropertyGuru Malaysia said government initiatives such as the Home Ownership Campaign is expected to stimulate buying appetite in the short to mid-term.

This was reflected in the Property Sentiment Index, which increased to 44 in the second half of 2018 (2H18) from 39 in 1H18, as well as the increase in asking prices for Kuala Lumpur properties in the same period.

The Property Sentiment Index is a benchmark of overall satisfaction with the real estate climate in Malaysia, based on consumer perceptions of market conditions, external realities and long-term potential growth. 

Meanwhile, the PropertyGuru Market Index is an aggregate of seller sentiment based on 450,000 residential property listings on