Property Market Report 2013 Industrial portion least active among markets

by **Cals** Wed 23 Apr 2014, 22:25

Property Market Report 2013 Industrial portion least active among markets

Business & Markets 2014

Written by Supriya Surendran of theedgemalaysia.com

Wednesday, 23 April 2014 10:28

KUALA LUMPUR: The industrial sub-sector was the least active among the property markets last year, with a substantial fall in terms of transaction volume and also the least gain in terms of transaction value. Industrial property contributes 2.2% of total transaction volume and 8.1% of total transaction value in local property markets.

According to a statement released by the National Property Information Centre, there were 8,418 industrial property transactions worth RM12.33 billion recorded in 2013. This represents a decrease of 15.7% in terms of volume from the 9,984 transactions recorded in 2012, while value increased moderately at 2.7% from the previous RM12 billion recorded.

The bulk of industrial property transactions came from Selangor with 2,681 units transacted, followed by Johor with 1,214 units and Perak with 1,082 units.

Terraced factory, warehouse and vacant plots dominated market activity, contributing 64.6% of total transactions. In terms of price, 71.3 % (6,006 transactions) of the total industrial transaction was for industrial property priced above RM250,000.

The overhang situation in the industrial property segment continued to improve with the reduction in unsold units and value. Last year, overhang units were reduced to 427 units worth RM167.63 million, compared with 617 units worth RM267.19 million recorded in the previous year. Unsold industrial property under construction rose by 9.3% to 859 units last year.

This article first appeared in The Edge Financial Daily, on April 23, 2014.