Indices in all property types remain stagnant in 2005
New Straits Times 29/4/2006 By P. Rajan

Price movements in housing market in 2005 can generally be considered stable, evidenced by the annual Malaysian All Houses Price Index (IHRM) which rose by a smaller rate of 2.4 per cent in the year as compared with the 4.8 per cent registered in 2004.

The price of the “average house” for all houses in Malaysia averaged at RM160,394 in 2005 as against RM156,549 in 2004. Most of the States recorded positive growth in the price index, while Kelantan and Johor suffered the steepest negative growth.

Not surprisingly, Kuala Lumpur continued to record the highest IHRM at RM333,936, followed by Selangor at RM246,568, Sabah at RM203,542, Sarawak at RM197,612 and Penang at RM181,359.

For the terraces, the National Terraced House Price Index (NTHPI) was fairly steady in 2005, rising marginally to 114.9 in Q4 2005 from 114.4 in Q3 2005.

The price paid for the “average” terrace in Malaysia in Q4 2005 was RM144,599, a marginal increase of 0.4 per cent over the RM143,937 recorded in Q3 2005. However, year-on-year comparison with Q4 2004 ((RM141,857) showed that the price in Q4 2005 had nudged up by 1.9 per cent. This may suggest that terrace house prices will continue the upward trend in the medium to long term.

Penang Island piped the Klang Valley to record the highest price for an average terrace transacted in the country at RM408,993; followed by the Kuala Lumpur Central region at RM395,422; Kuala Lumpur South (the mukim of Setapak and Ulu Klang) at RM287,588; Petaling District at RM281,401; and Kuala Lumpur North (Cheras and Petaling) at RM239,770.

In the case of highrises, the “average” price in the country revealed a declining trend during much of 2005, by 0.5 per cent from RM144,020 in Q1 2005 to RM143,308 in Q4 2005. This is attributable to the sharp downward trend in Negeri Sembilan (-5.4 per cent), Malacca (-4.1 per cent) and Johor (-2.6 per cent).