Real Estate in Sabah. How Did It Perform in Q1 2021?
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The performance of the Sabah property market strengthens in Q1 2021, indicated by the higher volume and value of transactions as compared to Q4 2020. The state registered 1,891 transactions worth RM1.027 billion, which increased by 61.2% and 54.6% in volume and value respectively as compared to Q4 2020.
The residential sub-sector remained the highest contributor to the real estate market in Q1 2021 with a 48.3% and 61.3% increase in volume and value respectively as compared to Q4 2020.
The primary market in Q1 2021 saw the new launches of 57 units in the state with 56.1% recorded sold. The new launches decreased compared to the recorded 961 units in Q4 2020.
The commercial sub-sector in Sabah recorded a triple-digit increase. Transaction volume is increased by 144.86% while the transaction value increases by 126.86% as compared to Q4 2020.
The industrial sub-sector recorded a 124% growth in transaction volume compared to Q4 2020. In terms of transaction value, Q1 2021 saw an increase of 163.3% as compared to Q4 2020.
Comparing to Q4 2020, we see healthy growth in the real estate market of Sabah. For residential, the Home Ownership Campaign initiated by the Malaysian government has encouraged homeownership for the primary residential market. Meanwhile, for the sub-sector, the RPGT waiver of up to 3 residential properties, allows property owners to sell off their properties at a lower price and attracted new buyers to ensure the sub-sector remained active.
While most industries are affected by the Covid-19 pandemic, some businesses are gaining the advantage of the situation. This allows the commercial sector to remain active and see a growth in both transaction volume and transaction value. This applies to the industrial properties in Sabah as well.
Q1 2021 saw very positive growth and we hope that it will continue despite the threat from the Covid-19 pandemic. With the uptake of vaccinations continue to increase, it just a matter of time the economic situation will be back to normal.
Yeoh Kok Woe (Real Estate Negotiator - REN21251)
Sources: Data from NAPIC | Images from rawpixel.com
Disclaimer: All data shown above are extracted from data provided by National Property Information Centre (NAPIC) under the Valuation and Property Services Department of Malaysia. Author wishes to point out that this article is purely for information and educational purposes and shall not be treated as a real estate investment advice.