Malaysian House Price Index (MHPI)
Highlights
    In 1Q 2018, the preliminary Malaysian House Price Index (MHPI) increased by 4.1% (4Q 2017: 6.1%), amid slower growth in prices for both landed and high-rise properties.
    By state, the slower increase in MHPI reflected the moderating trend across all key states (Kuala Lumpur, Selangor, Penang and Johor).

Source: National Property Information Centre (NAPIC)
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Source: National Property Information Centre (NAPIC)
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New Residential Property Launches
Highlights
    New residential property launches amounted to 10,078 units in 1Q 2018.
    On a quarterly basis, this was significantly lower than the average launches of 16,730 units in the past two years. The lower launches suggest a more cautious stance adopted by property developers in launching new properties amid the elevated levels of unsold properties in the market.
    During the quarter, 23% of new launches were priced below RM250,000, lower than the 32% average share recorded during 2010-2016. If this trend persists, it may exacerbate the current undersupply of affordable housing and an oversupply of higher-end housing.

Source: National Property Information Centre (NAPIC)
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p Preliminary

 

Housing Affordability
Highlights
    New data based on the latest Household Income and Expenditure Survey 2016 indicates that housing affordability is still an issue in Malaysia.
    In 2016, given the Malaysian monthly median household income of RM5,228, the actual median house price of RM313k was considered unaffordable compared to the estimated maximum price of an affordable home (RM282k).
    Among the selected states, houses in KL, Penang and Sabah were the most unaffordable as reflected by the gaps between the actual median house price and the estimated maximum price of an affordable home, which is computed based on the monthly median household income in the respective states.
    The prevailing market prices in key urban employment centres were also beyond the means of households, with varying degrees of severity across locations. Among the key city centres, houses were most unaffordable in Georgetown. Georgetown’s actual median house price of RM600k is much higher than the estimated maximum price of an affordable home at RM294k, based on its monthly median household income of RM5,477.

Source: National Property Information Centre (NAPIC), Department of Statistics, Malaysia (DOSM) and BNM estimates Note: Maximum affordable house prices are estimated using the Housing Cost Burden (HCB) approach, which states that a house is deemed affordable as long as housing costs do not exceed 30% of net monthly income. Estimates were based on the latest available official data on household income. Other factors considered include prevailing interest rates and loan tenure of 35 years. Calculations consider the disposable income of households (gross minus EPF, SOCSO and income tax).

*The city centres in each state refer to the major urban centres of employment in the state. It is based on the delineation of (i) District: Petaling (Shah Alam, Subang Jaya and Petaling Jaya) in Selangor and Johor Bahru in Johor; (ii) Mukim: Kuala Lumpur Town Centre in KL and Georgetown in Penang. Data for city centres in Sabah and Sarawak is currently unavailable.

 

Unsold Residential Properties
Highlights
    In 1Q 2018, total unsold residential properties increased to 146,196 units (4Q 2017: 142,950 units). This is more than twice the average unsold units from 2005 to 2015 (71,338 units).
    84% of the total unsold residential units were in the price category of above RM250,000.
    By state, Johor has the highest number of unsold units (34% share) in Malaysia, followed by Selangor (18% share).
    By property type, about two-thirds of total unsold units are high-rise properties such as apartments, condominiums and serviced apartments.

Source: National Property Information Centre (NAPIC)
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Note:

  1. Total unsold residential properties = Overhang + Unsold under Construction (UUC)
  2. Overhang: Unsold properties with Certificate of Completion and Compliance
  3. UUC: Unsold properties under various stages of construction that have not received Certificate of Completion and Compliance
  4. Figures above include Small Office/Home Office (SOHO) and Serviced Apartments

Source: National Property Information Centre (NAPIC)
p Preliminary

 

Source: National Property Information Centre (NAPIC)
p Preliminary