Iproperty.Com.My H1 2020 Portal Demand Analytics

iProperty.com.my H1 2020 Portal Demand Analytics

An analysis of subsale property demand using iProperty.com.my’s user visits and property listings data for residential subsale properties in Malaysia with a particular focus in KL, Selangor, Penang and Johor iProperty.com.my H1 2020 Portal Demand Analytics

Premendran Pathmanathan General Manager – Customer Data Solutions, REA Group Asia

Prem currently leads the data business in iProperty.com.my and together with his data team has produced property data analysis tools for property buyers and sellers, agents and developers. He provides regular talks on the Malaysia property market by demonstrating how to find value in property data. He is also the founder of brickz.my, a business that helped build a healthier property market in Malaysia by creating awareness on property prices.

Foreword As the number 1 property portal in Malaysia, iProperty.com.my garners millions of visits each month. These real-time behaviours indicate where Malaysia’s residential subsale property demand (consumers’ visits to the site) is, in comparison to property supply (residential property listings on the site).

The iProperty.com.my Portal Demand Analytics aims to provide a macro view of current demand trends in the Malaysian residential market at a national level and for the top states based on user visits and property listing data on iProperty.com.my.

Growth in demand would prove favourable from a selling standpoint, as user visits increase and/or listing supply decrease. This means there would either be more potential buyers coming into the market or there is less competition among current property sellers. On the flip side, a decrease in demand would benefit the buyers, leaning the market to their favour.

In this publication, we analysed the visits over our listings for the first half of 2020 where the demand growth trends are in comparison to the first half of 2019. The demand data presented in this publication is a represen- tation of consumer sentiments. Some searches might have been for research purposes, and other times it may have purely been an aspiration to own and stay in certain areas.

De�initions

Unique Visit : Based on Google Analytics tracking of unique visitors, where multiple visits by one visitor are counted as one unique visit

Active Property Listing : Property listings in iProperty.com.my that were active for at least one day and had a minimum of 1 view

Property Demand : The number of unique visits over the number of active property listings

Organic / Direct Traffic : Based on Google Analytics tracking, organic and direct traffic are not obtained through paid services or other sites

How was this calculated?

Total # of unique visits Demand = Total # of active property listings

H1 2020 Demand – H1 2019 Demand YoY Demand % Change = H1 2019 Demand

Median PSF in H2 2019 – Median PSF in H2 2018 Capital Growth = Median PSF in H2 2018

Considerations

• Only areas that have more than 350 listings were selected to negate the effect of any spikes. • Unique visits were used to prevent a single user from distorting the demand figures through multiple visits. • In the case where a single user visits multiple areas, the visit is equally weighted across the various areas and building types to maintain the uniqueness of the user. • All visits used in this report are based on organic and direct traffic only. • Pricing is calculated for areas that have had at least ten property transactions within one year. • Median Per Square Foot (PSF) is used to calculate capital growth due to various built-up sizes being transacted.

Data sources

Data Type Source Review Period

Median Price and Capital Growth Brickz.my/JPPH H2 2019: July 2019 to Dec 2019 H2 2018: July 2018 to Dec 2018

Property Demand iProperty.com.my January to June 2020

Note: The data system from JPPH officially records a property transaction once the stamp duty for the Sales and Purchase Agreement is paid. Analytics is based on the data available at the date of publication and as the more recent data from JPPH has not been released yet, the median price and capital growth figures are as of December 2019.

National Overview

Housing demand held on In line with the turbulent economic climate following the COVID-19 outbreak, the H1 2020 national demand for property dipped by -2.5%. amid global pandemic Just a few months into 2020, the world’s economy was brought to its knees due to the COVID-19 pandemic. Malaysia too has not come out of it unscathed as the Movement Control Order (MCO), which started on March 18, 2020, caused a sharp economic contraction. The business community found themselves in a difficult situation as many were forced to scale back or shut down completely. Similarly, the property sector was affected as the national lockdown and its many restrictions brought real estate activities to a halt for more than eight weeks.

With market activity falling sharply as a result of the national lockdown, the recently announced Government stimulus and policy intervention could not have come at a better time. The stamp duty exemption under the Home Ownership Campaign (HOC), the relaxation of Real Property Gains Tax (RGPT) for home sellers, and the lower Loan-to-Value (LTV) ratio should help uplift and restore the property sector in the coming months.

It is worth pointing out that the effect of the pandemic on the property market is not as dire as what we initially thought it would be. Things took a significant dive when COVID-19 first hit Malaysia; we experienced a reduction in both visits and listings during the initial stages of the MCO. Visits have since recovered following the implementation of the Conditional Movement Control Order (CMCO) in May when the movement restriction was gradually lifted. By the end of the first week of June, organic searches for sub-sale property listings saw an upward recovery of +41%. This growth is comparable to the 52-week pre-MCO average, allowing us to analyse our recovery using a one-year PRE-MCO benchmark.

Organic Searches on portal

Chinese New Year MCO Week 16 of MCO

+41% Organic search surpass

-46% 52-week average by 41% Showing limiting upward pressure 1/13/2020 1/20/2020 1/27/2020 2/3/2020 2/10/2020 2/17/2020 2/24/2020 3/2/2020 3/9/2020 3/16/2020 3/23/2020 3/30/2020 4/6/2020 4/13/2020 4/20/2020 4/27/2020 5/4/2020 5/11/2020 5/18/2020 5/25/2020 6/1/2020 6/8/2020 6/15/2020 6/22/2020 6/29/2020 7/6/2020

Week ending

Total Weekly Organic Searches 52 week average before MCO announcement

The data is a reflection of the confidence that property seekers have as the nation gradually recovers from the pandemic and the hunt for their dream home continues.

Nevertheless, this growth surge which we are witnessing at the initial stages of the Recovery Movement Control Order (RMCO) could be due to pent-up demand from the restricted lockdown phase from March to May 2020. It will be interesting to see how long this momentum will last as we move into the second half of 2020.

It should also be noted that the +41% jump which began towards the end of May as the country moved into the RMCO phase helped cushion the initial impact of MCO on consumer sentiment. This demand surge softened the early shocks of COVID-19 in Q2 2020 and is the main reason why the overall national property demand only decreased slightly by -2.5% in the first half of 2020.

COVID-19 has also caused some shifts in the local property market. In some areas, the demand figure did not fluctuate much but property search trends have shifted to either more affordable options such as flats or, in other areas, to homes with bigger layouts as more urban folks now have the option to work from home.

National Demand -2.5% of all property Year-on-Year

Terrace House Condominium Service Residence

-3.3% -5.2% -7.2% Year-on-Year Year-on-Year Year-on-Year

Median Price Median Price Median Price RM300,000 RM480,000 RM470,000 +2.21% -2.78% -4.88% Capital Growth Capital Growth Capital Growth

Note: National demand is based on all property types other than the terrace, condominiums, and service residences. It includes Semi-D, bungalow, cluster, townhouses, ﬂats, and apartments.

In tandem with the COVID-19 outbreak and following mobility restriction in Q2 2020, all three housing types saw drops in demand. Service residences and condominiums shrank in demand, with visits and listings declining for both. Compared to H1 2019 Portal Demand Analytics, the demand for service residences contracted sharply by -7.2% while demand for condominiums remained negative. Similarly, median prices and capital growths for these two property types have also gone down.

The silver lining is that visits and listings for terrace homes actually grew in H1 2020. However, listings growth outpaced visit growth, resulting in a -3.3% decline in demand. The terrace home is also the only sub-category where the capital growth figure is in the positive territory, at +2.21%.

Year-on-Year demand by capital city

Alor Setar -27.41% Kota Kinabalu -10.37% George Town -4.52%

Ipoh -11.42% Kuantan -5.41% Petaling Jaya -5.38%

Shah Alam Johor Bahru 7.63% -31.80% KL City Centre 6.73%

Kuching Seremban -0.44% -5.06% Melaka City -42.32%

Major cities in Malaysia

Location Demand Pricing

Year-on-Year % Change Median Price Capital Growth

SHAH ALAM 7.63% RM400,000 -1.11%

SEREMBAN -0.44% RM230,000 4.67%

GEORGE TOWN -4.52% RM290,000 -5.42%

KUCHING -5.06% RM350,000 0.49%

PETALING JAYA -5.38% RM688,000 -2.59%

KUANTAN -5.41% RM250,000 0.00%

KL CITY CENTRE -6.73% RM760,000 -7.07%

KOTA KINABALU -10.37% RM530,000 0.76%

IPOH -11.42% RM225,000 3.84%

ALOR SETAR -27.41% RM280,000 0.21%

JOHOR BAHRU -31.80% RM420,000 -1.73%

MELAKA CITY -42.32% RM220,000 -2.86%

*Kota Bharu, Kuala Terengganu, and Kangar are not included in the list as these cities have less than 350 listings each (refer to the Considerations on Page 2)

Major cities around the nation recorded a lower demand for houses except for Shah Alam, where the demand figure stood at +7.63%. This is because properties in Shah Alam are still considered affordable as it is on the outskirts of Klang Valley. Housing demands may have shifted to smaller cities and suburban areas while the search for larger homes could have been sparked by the remote office working trend which started because of the MCO.

The data also revealed a drop in capital growth figures in the major cities for H1 2020. KL City Centre saw the biggest decline at -7.07%, followed by Georgetown with -5.42%, Petaling Jaya by -2.59%, Johor Bahru by -1.73%, and Shah Alam by -1.11%. This trend is expected as properties in prime city areas have premium prices and would be the first to take a hit when an extraordinary event such as the COVID-19 pandemic occurs.

Kuala Lumpur

Demand holds steady Kuala Lumpur’s subsale property demand recorded only a marginal decline of -0.3% in H1 2020. Being the country’s economic hub, the prolonged lockdown in the capital city and job disruptions have left many workers in KL in a dilemma. Therefore, it is very promising to note that the interest in property remained stable amid COVID-19 throughout the six months – both listings and visits numbers for Kuala Lumpur property only dipped slightly below the positive trend line.

Demand -0.3% Year-on-Year

All building types RM500,000 Median Price -2.7% Capital Growth

Terrace House Condominium Service Residence

Demand Demand Demand -3.6% -3.8% -2.8% Year-on-Year Year-on-Year Year-on-Year

Median Price Median Price Median Price RM720,000 RM580,000 RM581,750 -3.67% -3.67% -5.43% Capital Growth Capital Growth Capital Growth

The COVID-19 impact is seen across demands for all building types in KL. Most noticeably, there was a negative demand for terrace houses. This contrasted sharply with H1 2019 when the terrace house came out tops in terms of capital growth and was the only building type to record a positive value growth.

Similarly, condominiums and service residences recorded a significant decline in demand and capital growth. This drop is attributed to consumer sentiment over future uncertainties such as loss of income and sudden changes in lifestyle, priorities, and personal circumstances.

Top 20 Most in-Demand Areas in Kuala Lumpur

All property types

1. BATU CAVES 11. DESA PARKCITY 2. TAMAN DESA 12. SETAPAK 3. SETIA WANGSA 13. WANGSA MAJU 4. DAMANSARA HEIGHTS 14. BUKIT JALIL 5. PANTAI 15. SUNGAI BESI 6. SENTUL 16. BRICKFIELDS 7. TAMAN TUN DR ISMAIL 17. SUNWAY SPK 8. SEPUTEH 18. KUCHAI LAMA 9. BANGSAR 19. AMPANG HILIR 10. SRI HARTAMAS 20. DESA PETALING

While Batu Caves took the crown as the most in-demand area in KL in H1 2019, it slipped to the fifth position at the end of 2019. However, it regained the top spot in H1 2020. This reversal was due to an increase in visitors who were looking at more affordable property options, specifically housing units which cost less than RM150,000.

Meanwhile, Taman Desa is at number two with a steep increase of +50% in visitors to its condominium category.

Area Breakdown

Location Demand Pricing

Year-on-Year % Change Median Price Capital Growth

OLD KLANG ROAD +45.58% RM410,000 -5.07% BUKIT TUNKU +42.41% RM1,470,000 -18.37% SEPUTEH +20.03% RM530,000 -3.20% TAMAN DESA +15.23% RM457,500 -0.32% SETAPAK +14.53% RM450,000 -3.06% SALAK SOUTH +12.56% RM500,000 +6.11% SRI HARTAMAS +11.84% RM672,000 -4.26% BANDAR MENJALARA +5.49% RM535,000 -3.98% JALAN KUCHING +4.81% RM367,500 -1.62% BANGSAR +4.45% RM1,200,000 -4.34% SETIAWANGSA +3.77% RM262,000 +3.45% SUNGAI BESI +2.82% RM550,000 -1.18% DUTAMAS +0.66% RM775,000 -4.88% PANTAI +0.25% RM420,000 -6.69% SRI PETALING -0.11% RM395,000 -3.52% DAMANSARA HEIGHTS -0.19% RM2,000,000 +0.31% MONT KIARA -0.41% RM1,000,000 -0.07% AMPANG -2.39% RM885,000 -7.52% KEPONG -4.04% RM550,000 -5.29% KL SENTRAL -6.03% RM1,200,000 -10.11% KL CITY CENTRE -6.73% RM760,000 -7.07% BRICKFIELDS -6.81% RM520,000 -3.78% JALAN IPOH -7.08% RM500,000 +0.52% BATU CAVES -7.10% RM540,000 +3.01% DESA PETALING -7.47% RM260,000 -3.38% SEGAMBUT -8.73% RM600,000 -2.71% CHERAS -9.23% RM365,000 -2.17% BUKIT JALIL -9.35% RM500,000 -3.56% DESA PARKCITY -12.21% RM1,675,000 +1.83% SUNWAY SPK -12.53% RM1,575,000 +4.40% SENTUL -12.80% RM372,500 -1.97% WANGSA MAJU -13.32% RM418,000 -2.80% KUCHAI LAMA -13.61% RM440,000 -4.80% TAMAN TUN DR ISMAIL -14.69% RM1,250,000 -1.46% KERAMAT -20.94% RM727,500 +7.03%

The demand for Old Klang Road increased by +45.58% due to a huge reduction in listings in H1 2020 compared to the year before. There was a disproportionate number of listings in comparison to the number of visits in H1 2019. The listing-visit gap has since closed, resulting in a significant increase in overall property demand. Nevertheless, the number of visits for terrace houses in Old Klang Road remained steady year on year.

Bukit Tunku, which previously had the lowest visitor per listing in Kuala Lumpur in H1 2019, came in a close second with a sharp demand increase of +42.41%.

Bangsar, Seputeh, Setapak, Setiawangsa, Sri Hartamas, and Sri Petaling saw positive growth attributed to a significant increase in visitors interested in terrace houses.

Selangor

Work from home Selangor has come out of H1 2020 as the only major state with a positive demand at +3.5% and with an overall increase in visits when compared trend is encouraging year-on-year.

homebuyers to COVID-19 has reshaped the way we live and work in the short term. An explore areas increase in remote working is shifting housing demand trends; where people are seeking to migrate to smaller cities or suburban areas for a larger home further away from and more comfortable living experience. For some, money and time previously the city spent on commuting can be channelled towards mortgage payments instead.

Whether or not this property search trend continues in the future needs to be monitored. As the country gradually recovers from the pandemic spread in H2 2020, the demand for more spacious homes may not be as prominent.

Demand +3.5% Year-on-Year

RM380,000 All building types Median Price -0.85% Capital Growth

Terrace House Condominium Service Residence

Demand Demand Demand +4.6% -0.4% -6.6% Year-on-Year Year-on-Year Year-on-Year

Median Price Median Price Median Price RM454,000 RM430,000 RM449,000 -0.30% -2.78% -3.54% Capital Growth Capital Growth Capital Growth

The median prices across all building types declined in H1 2020. While the YoY demand for terrace houses surged by +4.6%, the demand for condominiums and service residences dipped into the negative territory. Compared to the YoY demand for H1 2019, the demand for service residences fell sharply by -6.6% while demand for condominiums remained flat.

Top 20 most in-Demand Areas in Selangor

All property types

1. PUNCAK ALAM 11. DAMANSARA PERDANA 2. DENGKIL 12. BANGI 3. SEMENYIH 13. BANTING 4. CYBERJAYA 14. ARA DAMANSARA 5. TELUK PANGLIMA GARANG 15. SUNWAY 6. GOMBAK 16. MUTIARA DAMANSARA 7. KUALA SELANGOR 17. SERENDAH 8. GLENMARIE 18. PORT KLANG 9. SEPANG 19. PETALING JAYA 10. SETIA ALAM 20. SUNGAI BULOH

Looking at Selangor, the 20 areas most in demand are dominated by suburban townships. The pandemic which has given rise to flexible working hours might have encouraged more consumers to look at residential options further away from their workplace.

In that same vein, Puncak Alam tops the chart with the number of visitors doubling year over year. Landed properties such as terrace houses and semi-Ds are seeing significant growth in the number of visitors. This is most likely due to the lower price tags of landed homes in the area, priced around RM250,000.

Area Breakdown

Location Demand Pricing

Year-on-Year % Change Median Price Capital Growth

PUNCAK ALAM +39.86% RM250,000 -1.59% PORT KLANG +32.43% RM202,000 +25.92% SERENDAH +26.87% RM165,000 +7.30% AMPANG +18.12% RM313,500 -1.70% SEMENYIH +16.93% RM400,000 -3.50% ULU KELANG +16.82% RM515,000 -1.62% BANGI +14.90% RM357,500 -3.59% KUALA SELANGOR +13.90% RM263,356.50 -9.60% SETIA ALAM +11.60% RM600,000 -1.52% RAWANG +9.16% RM320,000 -2.72% SELAYANG +8.28% RM400,000 -4.55% SHAH ALAM +7.63% RM400,000 -1.11% MUTIARA DAMANSARA +7.26% RM1,170,000 -8.78% PUCHONG +7.12% RM390,000 -2.23% SEPANG +5.79% RM364,500 +14.57% KAJANG +5.18% RM330,000 +1.94% DAMANSARA DAMAI +4.04% RM195,000 -9.83% TROPICANA +3.85% RM620,000 -1.54% ARA DAMANSARA +2.58% RM600,000 -6.77% DENGKIL +0.80% RM537,500 0.00% DAMANSARA PERDANA +0.62% RM420,000 -1.67% KOTA DAMANSARA -0.07% RM470,000 -2.01% BANTING -0.31% RM282,500 +8.32% BANDAR KINRARA -0.80% RM620,000 -2.68% SERI KEMBANGAN -1.20% RM350,000 0.00% CHERAS -1.74% RM430,000 -0.34% SUBANG JAYA -1.75% RM615,500 -3.71% GOMBAK -1.82% RM370,000 +1.29% CYBERJAYA -2.32% RM500,000 -5.05% SUNWAY -2.93% RM390,000 +4.22% SUNGAI BULOH -3.33% RM428,000 0.00% BATU CAVES -3.46% RM370,000 -6.42% KLANG -4.16% RM370,000 +0.77% KEPONG -4.74% RM310,000 -4.23% PETALING JAYA -5.38% RM688,000 -2.59%

Most of the fastest-growing in-demand areas are located further away from the city centre with a median price below RM400,000.

Ampang recorded an upsurge in visitors for the service residence segment. These developments are priced between RM300,000 to RM400,000 and mainly consist of studio units, which is a popular housing option for working professionals and young couples.

Semenyih recorded significant visitor growth for landed properties in H1 2020. It consistently remained in the top five position from H1 2019. Located in the south-eastern part of Klang Valley, the town is known for its eco-tourism attractions.

Penang

Lukewarm short-term Known as the Pearl of the Orient, Penang is seeing a minor setback with property demand declining by -6.5% in the first half of 2020. As tourism is outlook as tourism one of the hardest-hit sectors following the lockdown and closure of both state and international borders, overseas investors who were looking for takes a hit long-term investments (buy-to-let) and second homes may be playing it safe, translating to the lower search or purchasing interest.

Demand -6.5% Year-on-Year

RM300,000 All building types Median Price -6.99% Capital Growth

Terrace House Condominium Service Residence

Demand Demand Demand -3.8% -9.3% -26% Year-on-Year Year-on-Year Year-on-Year

Median Price Median Price Median Price RM370,000 RM527,500 RM752,500 +2.50% -3.66% -13.41% Capital Growth Capital Growth Capital Growth

Housing demand in this northern state recorded a downward trend across all three property categories in H1 2020. On the bright side, prices of the terrace house in the mainland are still lower compared to its island counterpart. This also means there is a potential for the capital growth of mainland terrace houses to increase over time.

Top 20 Most in-Demand Areas in Penang

All property types

1. KEPALA BATAS 11. SUNGAI ARA 2. BALIK PULAU 12. BAYAN LEPAS 3. SEBERANG JAYA 13. 1GEORGE TOWN 4. SIMPANG AMPAT 14. AYER ITAM 5. BUKIT MERTAJAM 15. BATU FERINGGHI 6. TELUK KUMBAR 16. BUKIT JAMBUL 7. BUTTERWORTH 17. JURU 8. BATU MAUNG 18. BAYAN BARU 9. GELUGOR 19. SUNGAI DUA 10. PERAI 20. PULAU TIKUS

Apart from Gelugor, the first 10 most-in demand areas are dominated by neighbourhoods in the mainland area. Many opt to live out of the city centre, preferring a more affordable and sizeable living space in suburban areas.

For instance, in Butterworth and Bukit Mertajam, visitors were looking at properties priced between RM300,000 to RM500,000 with built-up sizes ranging from 1,500 sq ft to 2,000 sq ft.

Area Breakdown

Location Demand Pricing

Year-on-Year % Change Median Price Capital Growth

KEPALA BATAS +22.62% RM293,000 -0.29% GURNEY +14.49% RM936,500 -4.61% GELUGOR +10.46% RM392,500 -0.08% SIMPANG AMPAT +4.42% RM265,000 +2.36% BATU MAUNG +3.50% RM230,000 +2.36% SEBERANG JAYA +3.27% RM152,500 +11.11% BUTTERWORTH +1.44% RM320,000 +0.70% BUKIT MERTAJAM -2.90% RM300,000 +0.87% BALIK PULAU -2.92% RM300,000 -2.31% GEORGE TOWN -4.52% RM290,000 -5.42% AYEH ITAM -5.57% RM180,000 -0.81% TANJUNG BUNGAH -5.88% RM900,000 -1.41% BATU FERINGGHI -6.09% RM502,500 -0.83% PEARI -6.23% RM220,000 +6.16% BUKIT JAMBUL -8.08% RM250,000 -1.08% JELUTONG -11.46& RM350,000 +0.08% SUNGAI DUA -12.60% RM310,000 0.00% JURU -16.37% RM532,500 +6.31% TANJUNG TOKONG -17.80% RM750,000 -2.63% PULAU TIKUS -18.27% RM650,000 +8.33% BAYAN LEPAS -18.31% RM520,000 -4.39% BAYAN BARU -18.42% RM407,500 +1.26% SUNGAI ARA -22.24% RM365,000 -3.33% TELUK KUMBAR -30.53% RM150,000 -0.62%

Kepala Batas recorded a nearly doubled number of visitors in H1 2020. Most of the visitors were interested in properties priced between RM400,000 to RM500,000 with a built-up area of 1,500 sq ft to 2,000 sq ft.

In Gelugor, people were looking at service residences and condominiums with family-sized units.

Gurney’s spike in demand was mainly driven by visitors looking at luxury condominiums priced at RM2.5 million.

Johor

New launches compete Even before the pandemic, the residential property market in Johor was sluggish. It has remained subdued in H1 2020. Johor’s narrowing user visits with subsale for home coupled with an influx of listings have pushed the property demand in this southern state down by -22.8%. Statistically, Johor is not short on residential buyers’ attention property supply. The southern state has the highest residential property overhang in the country.

Many of the newly launched developments are priced beyond RM1 million while the median transacted price for Johor is RM370,000. The oversupply of higher-end units will eventually push the prices down to the benefit of buyers. However, developers are offering attractive packages to entice prospective home buyers towards these new properties instead, which are a direct competitor to the available subsale units for sale.

Johor is an attractive residential option for many foreigners who work in Singapore. The closing of the Johor-Singapore border during the lockdown due to COVID-19 would have dampened their purchasing sentiment. This might also have contributed to the double-digit drop in H1 2020.

Moving forward, however, improved connectivity with Singapore will help spur property uptake by foreigners who are looking to leverage on Singapore’s robust economy and reputation as the global financial hub. The Rapid Transit System (RTS) project linking Johor Bahru and Singapore is expected to begin work in November 2020. This looks rather promising as the long-awaited project will boost Johor’s economy and create an economic spill-over, particularly in Iskandar Malaysia.

Demand -22.8% Year-on-Year

All building types RM370,000 residential Median Price 1.71% Capital Growth

Terrace House Condominium Service Residence

Demand Demand Demand -26.3% -25.3% -27.8% Year-on-Year Year-on-Year Year-on-Year

Median Price Median Price Median Price RM360,000 RM380,000 RM380,000 +4.97% -0.91% -5.97% Capital Growth Capital Growth Capital Growth

Johor recorded a double-digit decline in demand across all three property categories. However, terrace houses still managed to record capital gains of +4.97%. It is also the only building type to record a positive value growth in H1 2020. In H1 2019, all three property types recorded robust price growths, but the terrace home category is the only one that remained steady in terms of median prices a year later.

Top 15 Most in-Demand Areas in Johor

All property types

1. BATU PAHAT 9. JOHOR BAHRU 2. KLUANG 10. ISKANDAR PUTERI (NUSAJAYA) 3. PASIR GUDANG 11. SKUDAI 4. SENAI 12. TAMPOI 5. KULAI 13. PERLING 6. PERMAS JAYA 14. ULU TIRAM 7. MASAI 15. TEBRAU 8. GELANG PATAH

Batu Pahat takes the crown for the most in-demand area in Johor. It has maintained its dominance in the 2019 Portal Demand Analytics despite the YoY demand going down by -34.26%.

Coming in at a close second is Kluang with an increase in demand by +19%. This top 15 list of the most in-demand areas in Johor for H1 2020 has received two new entries in the forms of Kluang and Iskandar Puteri, while Tampoi dropped off from the list.

Iskandar Puteri, which is a new entry in the 15 most in-demand areas list has shown outstanding growth by +62.45%. This is due to the number of listings reducing by half. This newly developed township has a balance of visits and listings so any volume shift on either the supply or demand end will show a significant growth or decline.

Area Breakdown

Location Demand Pricing

Year-on-Year % Change Median Price Capital Growth

ISKANDAR PUTERI (NUSAJAYA) +62.45% RM550,000 -1.79% KLUANG +19.00% RM199,000 +5.26% PASIR GUDANG -0.98% RM300,000 +6.18% KULAI -17.60% RM350,000 +7.23% MASAI -23.57% RM360,000 +1.30% SENAI -24.75% RM350,000 +12.79% PERMAS JAYA -28.58% RM400,000 +7.74% TAMPOI -30.05% RM360,000 -0.62% JOHOR BAHRU -31.80% RM420,000 -1.73% GELANG PATAH -33.08% RM540,000 -2.65% BATU PAHAT -34.26% RM300,000 -0.53% ULU TIRAM -34.30% RM412,500 -1.09% SKUDAI -35.81% RM390,000 +2.16% PERLING -37.21% RM480,000 +0.45% TEBRAU -51.61% RM500,000 +2.04%

Johor’s industrial hub, Pasir Gudang has garnered more visitors in H1 2020. Despite the increase in visits, the property demand in that area has declined marginally by -0.89% as the number of listings grew more rapidly compared to visits volume.

The terrace house is still the most popular property type with visits doubling. These houses are priced between RM300,000 to RM400,00. Also, there was a remarkable visit growth for properties with a lower price point, i.e. below RM100,000.

Compared to the H1 2019 Portal Demand Analytics, visits for Kluang has grown by +25% in H1 2020. Its growth has outpaced listings growth which translates to an increase of +19% in demand. The number of visitors has increased across all landed properties.

About REA Group & iProperty.com.my REA Group in Asia operates digital real estate sites, experiences and events which deliver the most comprehensive set of related property services and project marketing across South East Asia, including Malaysia (iProperty.com.my), and Thailand (thinkofliving.com and Prakard), and the Greater China Region, including Mainland China (myfun.com) and Hong Kong (squarefoot.com.hk and SMARTExpo).

Headquartered in Australia, REA Group is a multinational digital advertising company specialising in property. Listed on the Australian Securities Exchange (ASX:REA) we operate Australia’s leading residential, commercial and share property websites realestate.com.au, realcommercial.com.au and flatmates.com.au. REA Group is also a substantial partner in 99 Group which operates the 99.co and iProperty.com.sg businesses in Singapore and rumah123.com in Indonesia. REA Group also has significant shareholdings in Move, Inc through realtor.com in North America and Elara Technologies through proptiger.com, maakan.com and housing.com in India. iProperty.com.my is headquartered in Kuala Lumpur, Malaysia and employs over 200 employees. With more than 3 million visits each month, iProperty.com.my is the market leading property portal, offering a search experience in both English and Bahasa Malaysia. iProperty.com.my also provides consumer solutions such as LoanCare – a home loan eligibility indicator, News & Lifestyle channel – content to enhance consumers’ property journey, events – to connect property seekers with agents and developers offline, and much more.

For news related to REA Group and iProperty.com.my, visit www.iproperty.com.my/newsroom and discover residential property demand and trends, tech and product updates and more.

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