Deputy finance minister: Property market to grow in 2023 despite moderately lower economic growth

KAJANG, March 15 ― The Malaysian property market is expected to grow this year despite the projection of a moderately lower economic growth due to the unpredictable external environment, said Deputy Finance Minister II Steven Sim.

He said that the accommodative policies, continuous government support, execution of measures outlined in the revised Budget 2023, as well as strategies and initiatives under the 12th Malaysia Plan would support the property sector.

The national property market recorded more than 389,000 transactions worth RM179.0 billion in 2022 ― an increase of 29.5 per cent year-on-year (y-o-y) in terms of volume and a 23.6 per cent y-o-y rise in value, he added.

“The residential sub-sector led the overall property market activity, with 62.5 per cent contribution in volume,” he said in his address at the launch of 2022 property market report here, today.

The text of his speech was read by Valuation and Property Services Department director-general Abdul Razak Yusak.

According to the property market report, there were 243,190 transactions for residential properties worth RM94.28 billion recorded last year, an increase of 22.3 per cent in volume and 22.6 per cent in value y-o-y, supported by the uptrend recorded in Penang (31.1 per cent), Johor (24.3 per cent), Perak (18.9 per cent), Kuala Lumpur (18.4 per cent), and Selangor (15.9 per cent).

Meanwhile, the commercial property segment registered 32,809 transactions worth RM32.61 billion in 2022, a growth of 46.3 per cent in volume and 16.7.per cent in value compared to 2021.

The residential overhang numbers declined to 27,746 units worth RM18.41 billion as of the fourth quarter of 2022, down by 24.7 per cent and 19.2 per cent in volume and value, respectively, compared with 36,864 units worth RM22.79 billion in the same period in 2021.

The report noted that Johor retained the highest

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