Industrial Property Market Report H1 2022
2022-11-14
Industrial Property Market Report H1 2022
There were total of 3,830 transactions worth RM10.75 billion recorded in the first half of 2022 (H1 2022), which indicates an increased by 49.5% in volume and 66% in value as compared to first half of 2021 (H1 2021). Selangor continued to led the market, with 31.8% (1,219 transactions) of the overall industrial volume, followed by Johor and Perak, each with 13.8% and 9.0% market share. Terraced factory formed 31.4% of the total industrial transactions, followed by vacant plots (29.5%), and semi-detached factory (23.2%).
Industrial Market Status
Despite a little reduction in volume and value of 5.2% and 12.2% respectively (H2 2021: 1,130 overhang units worth RM1.58 billion), the industrial overhang remained minimal at 1,071 units worth RM1.39 billion. Similar to the previous point, the category of unsold under construction fell by 22.9% to 504 units from H2 2021’s 654 units. The unsold not constructed recorded 43 units, more than 22 units recorded in H2 2021.
Industrial Construction Activity
The industrial sub-sector of the construction activities are still operating at a low tone. 118 units were completed, 265 units were started and new planned supply 118 units. There were 119,551 existing industrial units with 4,620 units in the incoming supply and 6,572 units in the planned supply at the end of June. Selangor and Johor led the existing stock and incoming supply with a combine market share of 50.2% and 54.8% in the related development stages while Melaka led planned supply with 27.1% share (1,783 units).
Price of Industrial Property
Industrial property prices performed inconsistently but remained stable in major states. In WP Kuala Lumpur, a terraced factory at Sri Edaran Light Industrial Park increased by 19.4%. Likewise, Selangor and Pulau Pinang recorded an upward movement between 2.5% to 9.8% and 4.7% to 5.8% respectively for similar type.