Residential property launches in the first half of 2023 plunged 50.2% to just over 16,000 units from 33,205 units in H1 2022, said the National Property Information Centre (Napic).

Compared to the second half of 2022, residential launches in the first half of 2023 were down by 20.9%.

These statistics paint a rather bleak picture for the property market, especially the residential property segment, Napic’s H1 2023 property market report said.

However, sales performance for new launches recorded an increase of 32.2% compared to H1 2022 of 14.6% although it was lower compared to H2 2022’s 36.8%.

In the first half of 2023, 20.7% of new residential units were priced below RM300,000, 37.3% between RM300,001 and RM500,000, 34.3% between RM500,001 and RM1 million, and 7.7% above RM1 million.

Johor had the most residential launches (25.9% of the national total), with a sales performance of 34.5%. Selangor came next (18% share) with a sales performance of 38.6%, followed by Penang (9.9% share) with a sales performance of 64%.

With terrace homes dominating new launches, Napic said single-storey (3,489 units) and 2-3 storey homes (4,795 units) contributed 50.1% of the total units with a sales performance of 49.1%. This was followed by condominium/apartment units at 31% share (5,126 units) with a sales performance of 27.8%.

Napic, which sits under the valuation and property services department, said property market activity in the first half recorded more than 184,000 transactions worth RM85.37 billion. This is a 2.1% decrease in volume and 1.1% rise in value compared to the same period last year.

Overhang units decreases

On the overhang situation, Napic said a total of 26,286 overhang units worth RM18.30 billion was recorded in H1 2023, down by 5.3% and 0.6% in volume and value respectively against H2 2022.

“Most of the overhang is in Johor with 4,717 units worth RM4 billion. Likewise, the unsold under construction residential units saw a decrease of 4.9% to 54,844 units compared to H2 2022 (57,649 units),” it said.

On the same note, the serviced apartment sub-sector recorded 22,497 overhang units with a value of RM19.13 billion, a decrease of 6.2% and 5.2% in volume and value respectively against H2 2022.

“Johor recorded the highest overhang in the country with 59.4% (13,366 units), followed by Kuala Lumpur and Selangor, with 24.2% (5,450 units) and 12% (2,689 units) respectively,” it added.

Moving forward, Napic said the property market performance was “moderate” for H1 2023, despite a number of headwinds which has limited the sector’s growth potential.

“With the positive economic growth projection by Bank Negara Malaysia, expected between 4% to 5% in 2023, supported by various government initiatives and assistance, the property market performance is expected to remain cautiously optimistic,” it concluded.

Source: FMT Online

known for its rich heritage and vibrant culture, will soon welcome the opening of the RM80mil Lin Xiang Xiong Art Gallery at The Light City in Gelugor.

Named after the owner-cum-world-renowned artist and entrepreneur, the seven-storey gallery will have retail shops, basement carpark and restaurant sited on a 0.36ha land.

The 86,929.34sq ft gallery is expected to be completed in 15 months.

Prof Lin, who was at the gallery’s commencement ceremony, said there was potential for further international recognition with Penang’s cultural and artistic development on the rise.

“I aspire for my gallery to become a platform showcasing the fusion of East and West cultures, thus elevating Penang’s cultural and artistic ambience and global standing, and at the same time fostering a harmonious atmosphere that unites diverse cultural beliefs and traditions.

“I believe that cultural and artistic works possess the power to promote global peace, infusing positive energy into cultural and artistic content and guiding those who may have strayed from the right path,” he said in his speech.

Prof Lin, who is also Space Art and Culture (Malaysia) Private Limited chief executive officer, said the art gallery was on track for completion and its opening date had been planned for Sept 9, 2025.

“I intend to showcase 500 of my artworks but I can only showcase 300 at any one time so the remainder will have to be rotated periodically.

“Penang has also stood out as my choice location in my quest to establish this gallery, due to its storied history, international recognition and the unwavering support of the Penang government and its people,” he said while talking about luminaries like Penangite Dr Wu Lien Teh, who invented the medical face mask.

Prof Lin also highlighted the state’s rich East-West cultural exchange history spanning over two centuries and emphasised George Town’s rich multiculturalism, which has ignited a lively and diverse cultural tapestry.

Also present at the ceremony were IJM Land advisor Datuk Toh Chin Leong, IJM Land northern region general manager Goh Su Yin and other guests.

Toh, in his speech, lauded Prof Lin’s unwavering commitment and sacrifices in making the gallery a reality.

These include the challenges encountered during construction such as having to deal with escalating costs of building materials and labour, and disruptions brought on by the Covid-19 pandemic.

“The art gallery is not a conventional investment but a dream to use art as a conduit for peace and harmony among humanity,” said Toh.

Goh said the gallery’s design would be that of a turtle approaching the shore – signifying longevity and kindness.

“Prof Lin was inspired by the turtles we used to have in our nearby Light Collection project. That was how he came up with the building’s design,” she said.

The artist, hailing from Guangdong, China, has gained international acclaim as both an artist and entrepreneur.

Currently a citizen of Singapore, Prof Lin pursued his studies on the island republic and France and has exhibited his artworks at exhibitions worldwide.

Source: TheStar.com.my

Nanyang Street @ RU Square is the transformation of early Penang Style while adapting to the Southern Eclectic Style building to Modern Living Shophouses from the George Town UNESCO World-Heritage to the heart of Raja Uda, Butterworth. This is part of the approximately 14-acre development of RU Square which consists of residential and commercial properties upon completion. This well-planned commercial development is proudly brought to you by Jayamas Property Group.

This development offers 77 units of freehold extendable 4-storey shop offices that feature the Eclectic Style Shophouses from three different eras till the end of exhaustion to the late Qing Dynasty. The built-up is from 3,337 sq. ft – 7,337 sq. ft. Indicative selling price starts from RM1,980,000. It is scheduled for completion by the end of 2026.

Project Name: Nanyang Street @ RU Square
Location: Raja Uda, Butterworth
Property Type: 4-storey shop office (Extendable)
Built-up Size: 3,337 sq.ft. – 7,337 sq.ft.
Total Unit: 77 units
Indicative Price: RM1,980,000 onwards
Developer: Jayamas RU Sdn Bhd (Jayamas Property)

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

About Ferringhi Hills

A landed residential development within the established township of Batu Ferringhi. It is located along Persiaran Sungai Emas 1, only 10 minutes walk to Ferringhi Beach. It will feature a mix of 3-storey terrace (with lower-ground level) and semi-detached, bungalow houses, to be constructed in two phases.

Find out more about Ferringhi Hills

The implementation of a vacancy tax could be a key factor in addressing the issue of vacant and unsold housing units across Malaysia.

Khazanah Research Institute’s Theebalakshmi Kunasekaran said this tax is imposed on housing units that remain unoccupied or unused for a certain time period.

It is usually calculated as a percentage of the gross selling price of these units, which means the higher priced housing units will have a greater corresponding tax amount.

She noted in a report the aim of this tax is to encourage developers to be more cautious when planning housing projects.

“They would be prompted to undertake a comprehensive feasibility study to analyse the local market demand and provide housing that caters to the diverse needs of different population segments.

“This can prevent oversupplying products that can contribute to the property glut,” she said.

According to Theebalakshmi, this tax will also discourage speculative activities by people who hold units to make quick profits.

Meanwhile, Theebalakhsmi said vacant units not only are left idle, but also impact resources and neighbourhoods in terms of development. She said when there are overhang units, there is less utilisation of public transport services which will place a strain on public resources.

“Additionally, the presence of unoccupied units can also lead to disinvestment in townships by discouraging property developers and businesses from investing in the neighbourhoods,” she said.

Theebalakhsmi concluded the vacancy tax will push developers and homeowners to start selling or renting their empty units to avoid paying the tax.

“Consequently, this will provide home buyers with access to affordable housing options as developers lower their price through ‘fire sales’ to clear the glut.”

Source: TheStar.com.my