Decline in property sales continues in 3Q2016

PETALING JAYA (Dec 7): The negative trend in the property sector continues as the third quarter of 2016 registered a decline of 8.45% and 6.34% drop quarter-on-quarter in volume and value respectively, according to National Property Information Centre (Napic) data for 3Q2016.

A total of 76,456 properties were transacted averaging 25,485 properties a month, a decrease of 10.98% compared with the same period last year.

On transacted value, the total dropped from RM32.88 billion in 2Q2016 to RM30.79 billion in 3Q2016. Compared with the same period last year, the total transacted value has declined 17.91%.

Residential properties continue to dominate the property sector where a total of 49,640 residential properties worth RM15.61 billion were sold in 3Q2016. However, when compared with 2Q2016, the transacted volume and value actually dipped 6.1% and 6.6% respectively. Y-o-y, the transacted volume and value have declined 13.91% and 12% respectively.

Agricultural land emerged as the second main driver of property sales in 3Q2016, recording 15,634 transactions worth RM3.07 billion. Compared with 2Q2016, the transacted value has increased 15.6% despite a decrease of 14.6% in transacted volume.

The third most transacted property type was commercial properties, taking up 8% of the overall transactions. Up to 5,801 commercial properties were sold in 3Q2016 for a total of RM5.8 billion while transacted volume and value declined 7.17% and 4.96% q-o-q respectively.

The third quarter of 2016 also saw 4,058 development land deals closed for a total of RM3.47 billion, down 18.1% and 20.6% in terms of transacted volume and value.

These results mirrored statements made by Real Estate and Housing Developers’ Association president Datuk Seri Fateh Iskandar Mohamed Mansor during the organisation’s annual dinner last week, citing that global economy instability, a falling ringgit and decline in crude oil prices have “adversely affected” the industry.