Previously, we reported on the enviable strength of the industrial market. This month, we will examine the data of the residential and the commercial market, which will provide some insight for keen readers. Both sectors are divided into four price categories: Below RM300,000.00, between RM300,000 to RM500,000, between RM500,000 to RM1 million and above RM1 million.
In the residential market, the turnaround from H12020 to H12021 in a classic V-shape is very appealing. If one looks at the detailed data across the country, it is even more amazing. In the residential sector, the percentage of below RM300,000 shows the lowest increase (12.5 per cent), although it registered the highest volume (units). Two of the price categories, i.e. from RM300,000 to RM1 million are neck and neck at around a 35 per cent increase; however, the star of the show is the properties above RM1 million at 59.7 per cent!
In the commercial market, it is slightly different as the pandemic raged in the second quarter of 2021. The units priced below the RM300,000 bracket shot up 34.6 per cent, whilst the categories between RM300,000 to RM1 million are a little less buoyant at around 32 per cent. As opposed to the residential market, the units priced above RM1 million shows the least increase at only 10.5 per cent!
In conclusion, it appears that the consumers have more faith in the residential market despite the overhang situation, and are perhaps also taking advantage of the incentives offered by the government and developers. The commercial sector may have less appeal because of the general economic performance and the changing axis due to the e-commerce business that is fast taking traction.
This article was written by Irhamy Ahmad, Founder and Managing Director of Irhamy Valuers International.
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