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REENA KAUR BHATT reports latest figures on the residential sub-sale market in Negeri Sembilan and speaks to an expert to find out more about exciting developments in the state which will help accelerate its real estate market.

Latest data from iPropertyiQ.com showcases purchasers’ hotspots, transaction activities and median prices for secondary residential properties across Negeri Sembilan. The review period was from October 2015 to September 2016.

NEGERI SEMBILAN’S SALES KPI EQUALLED SELANGOR’S

Total transaction volume for residential sub-sale properties in the country amounted to 86,800. Negeri Sembilan garnered 5.3% or 4,600 transactions of the market share. In comparison, the best performer, Selangor, recorded 31.9% or 27,689 transactions.

To obtain a fair indication on how Negeri Sembilan’s secondary residential property market actually fared, a sales performance ratio test was done, where population was taken into consideration; i.e Transaction Volume/ State’s Population.

The purpose of this calculation is to determine Negeri Sembilan’s Sales Key Performance Indicator (KPI), as the ratio obtained reveals the number of transactions per person.

Using latest population estimation figures (2016) from the Department of Statistics Malaysia, the number of people living in Selangor and Negeri Sembilan were 6.31 million and 1.11 million, respectively. The ratios obtained using the afore-mentioned formula were 0.439 (27,689 transactions/6.31 million people) for Selangor and 0.414 (4,600 transactions/1.11 million people) for Negeri Sembilan.

As there is only a slight deviation of 0.025 or 0.057%, this shows that the Negeri Sembilan is on the same page as the best-performing state (Selangor) in terms of residential sales success. A promising trend indeed for this small state which has always been in the shadow of the more popular Selangor.

TOP RESIDENTIAL PRODUCTS IN THE PAST YEAR

 

TERRACE HOMES

Terrace homes appeared as the best performing subsector in the landed residential category in Negeri Sembilan in the October 2015-September 2016 period. It comprises of ALL types of terrace homes - single, double or triple storey.

Top 7 Neighbourhoods

Taman Nusari Bayu in Bandar Seri Sendayan emerged as the most popular residential neighbourhood with a median price per sq ft of RM242. Bandar Springhill in Jimah came in second with considerably lower median prices of RM137 while Bandar Seremban Selatan in Seremban Jaya recorded median prices of RM158.

Total Transactions

Transaction activity for terrace homes throughout the 12 months was generally stable and healthy with average monthly figures topping 266 transactions.

Median prices per sq ft for terrace homes recorded a 28% decline in the year, from RM535 psf to RM386 psf. The downward trend in 2016 could be explained by the economic downturn and depreciating Ringgit, more homebuyers are purchasing properties that are more affordably priced. Nevertheless, median prices in the state continue to remain above Malaysia’s overall median price.

FLATS

Flats appeared as the best performing sub-sector in the high-rise residential category in Negeri Sembilan. Flats are those classified by the Valuation and Property Services Department (JPPH) as recorded in the Sales & Purchase Agreements (SPA). This will mean only lowerpriced high-rise properties; apartments (mid-priced) and condominiums (higher-end) are not included.

Top 5 Projects

Bearing a median price per sq ft of RM62, flats in Taman Semarak were the most popular among property purchasers in Negeri Sembilan. Next in line was Garden Avenue, Seremban 2 with slightly higher median prices of RM96. Rounding up the top three spot was Pangsa Rakyat College Heights in Mantin with a median price of RM91.

Total Transactions (Oct 2015 - Sept 2016)

With average transactions of 21 per month, sales were low, albeit stable in the review period. It is evident that homebuyers in Negeri Sembilan still prefer landed properties. High rise units and especially flat is the product choice for the low-income earners due to its much lower entry point.

Median prices for flats generally recorded a stable trend with prices moving slightly downwards from RM75 per sq ft in October 2015 to RM61 per sq ft in September 2016. However, overall prices were well below the country’s average where the highest median price recorded in Negeri Sembilan (RM98) was only half of that of Malaysia’s (RM187).

 

 

According to the CBRE I WTW Real Estate 2016 Market Outlook Report, certain areas in Negeri Sembilan will see the Bumiputera quota being revised back to 30%.

Do you have any updates on this issue and how do you think this revision will help rejuvenate the property market activity in the state?

Under the new State Housing Policy {Dasar Perumahan Negeri Sembilan (DPNS)}, 50% of new developments must fall under the Bumiputera quota where 30% must be sold to Bumiputera buyers only and the remaining 20% is designated as Bumiputera Open Lot.

The latter means that the Bumi restriction will only apply for the first five years for these properties; owners will be allowed to sell off their property to a non-Bumi purchaser in the sixth year onwards. The state government will consider a 30% Bumiputera allocation for certain areas in Negeri Sembilan. These special zones include Rahang, Rasah, Templer, Temiang, Lobak, Mambau, Seremban 2/Jalan Labu, Senawang, Pajam, Mantin, Setul, Pekan Port Dickson, Lukut, Pekan Bahau and Pekan Kuala Pilah.

The report also states that “Although it is not officially announced, it is believed that the state government is not keen on high-rise residential development but are willing to approve high-rise residential developments meant for affordable housing”.

Do you have any updates on this issue?

To date, the state government prefers that developers build landed properties for the affordable housing scheme, [Rumah Mampu Milik (RMM) Type A]. However, REHDA feels that developers should be granted a leeway for projects in prime areas.

Bearing in mind the rising costs of construction and scarcity of land, developers are hoping that they will be given the option to construct high-rise units instead of landed homes for RMM type A.

What does it mean for homebuyers/investors and how will the new guidelines affect property prices, supply and demand moving forwards?

Prior to the new Dasar Perumahan Negeri Sembilan (DPNS) announcement by the Chief Minister on 5th June 2015, 30% of every development was required to consist of low-cost homes with selling prices capped at RM40,000 per unit (prices varied according to district).

However, these homes only provided basic furnishings and as the cost of living increased, they were not sufficient to cater to the growing needs of the current population. Most of the occupants of these homes were plagued with maintenance issues, spoilt facilities and social problems.

In an effort to transform the quality of living at these low-cost residences and to comply with the National Housing Policy, the state raised the bar for the provision of homes for low-income earners. Under the DPNS, developers are required to provide affordable homes comprising of low-cost houses, low medium cost houses and medium cost houses.

This transformation from low cost to affordable will result in homes that are more comfortable, spacious and of better quality; thus improving the quality of life of residents.

This allocation is further broken down into three parts:

• 15% of Type A (Capped at RM80,000)

• 15% of Type B (Capped at RM250,000)

• 20% of Type C (Capped at RM400,000)

As the cost of constructing these affordable homes are subsidised by the other half of the project, i.e the mid-priced and higher-end properties; a higher allocation of affordable homes will mean higher prices for the other homebuyers.

What are the emerging property hotspots in Negeri Sembilan - If someone is looking to invest in property in Negeri Sembilan this year, what would be the best kind of property to buy?

My top picks are Seremban 2, Bandar Ainsdale, Bandar Sri Sendayan, Senawang, Pajam as well as projects located along highways such as PLUS and LEKAS, and nearby universities and colleges.

The property type depends solely on a buyer’s needs – is it for own stay or for investment purposes? Negeri Sembilan fulfils all the requirements aspiring homebuyers are looking for, i.e. affordability, accessibility and connectivity. It is up to buyers to research and scout around for the product which will best align with their lifestyle as well as fit their budget.

DISCLAIMER: The source of Sale data is from the Valuation and Property Services Department (JPPH) which officially records a property transaction once the stamp duty for the Sales and Purchase Agreement is paid while the source of rent data is from agents’ listings listed at iProperty.com. Analytics are based on the data available at the date of publication and may be subject to revision as and when more data becomes available.