MARKET FEASIBLE

The market feasible will determined by potential market opportunities which is if an adequate
level of demand does not exist for the product and the developer does not know how to
differentiate its product. Market feasible should focus on three main areas which is location, the
demand for the product and the supply of comparable items. Market feasibility is a study that
identifies the success of a product in a particular market. In this market feasible topic will show
the existing and incoming stock based on the property stock table 2021 in state of Perak.

SUPPLY OF RESIDENTIAL UNITS BY TYPE IN PERAK

In term of overhang properties, NAPIC’S data showed that Perak had the third-highest number in
Malaysia. Demand in residential property market has affected on going pandemic with the recent
rise in positive cases during the third wave of the virus infections continues to bear down
consumer sentiments. However, consumers will looking to purchase properties by strategies in
low interest rates which is it would be a boost customer to buy a property and also reinstatement
of the Home Ownership Campaign (hoc) 2020-2021 that would help boost demand. In 2021, the
Perak state Government will be building more affordable housing rather than high-end houses
residences.
PROPERTY MARKET TRANSACTION ANALYSIS.

The property market performance shows a significant increase in the first half of 2021, about
139,754 unit has been transacted in the property market which value RM 62.1 billion compared
to the same period last year with the record of 115,476 unit which value RM 46.94 billion
recorded. This shows the uprising trend in the property market about 21 percent in the volume of
transaction trend while the value of transaction trend rose up about 32.1 percent.

All the sub sector in the property market show an upward movement in both volume of
transaction and value of transaction. The most active transaction that has been recorded were in
the Industrial property that is increasing about 2,562 unit or 29.4 percent in the volume of
transaction and RM 6.48 Billion or 19.8 percent in the value of transaction from the last year.
Followed by the commercial property which is 10,433 unit or 28.5 percent in the volume of
transaction and RM 10.93 Billion or 28.4 percent in the value of transaction from the previous
year. Residential property records the increase in the volume of transaction about 92,017 unit or
22.2 percent with the value of transaction about RM 34.51 Billion or 34.7 percent from the last
year. While the development land that has been recorded show the increase in the volume of
transaction about unit or 21.3 percent with the value of transaction about RM or 40.6 percent
from the previous year. Lastly the agriculture land shows the increase in the volume of
transaction about 26,431 unit or 13.9 percent and the increase in the value of transaction about
RM 5.49 billion or 33.1 percent from the last year.

Overall transaction by price range also show the significant increase from the last year. There are
four price range that has been analysis that are bellow RM 300k, RM 300k to RM 500k, RM
500k to RM1 Million and lastly Above RM 1 Million. The most highly demand for the property
within the range of bellow RM 300k with the recorded transaction 85,281-unit, 13 percent from
the last year 75,440 unit. While for the property within the price range of RM300k to RM 500k
increase from 20,327 unit in 2020 up to 27,623 unit in 2021 about 35.9 percent. For the property
in the price range of RM 500k to RM 1 Million rise from 13,643 unit in 2020 to 18,454 unit in
2021 about 35.3 percent. Lastly, the property within the price range of above RM 1 Million
increase from 6,066-unit last year to 8,396 unit this year, the increase about 38.4 percent.

In this report, the subject property (SP) was located in Kuala Kangsar, Perak. All the transaction
that are recorded within the Perak state will be explained in details in this paragraph. The total
number of transactions that has been recorded in Perak for all Sub-sector is 1,981 unit recorded
or 1.42 percent from the total number of properties transacted in the market in first half 2021
with the total value of RM 137.55 Million.

The highest number of units transacted in the market is Agriculture land with the total volume of
1,216 unit and value RM 92.82 million. Paddy agriculture land was the highest agriculture
property land that was transacted in the market that is 780 unit. While there are no transaction
made in the market for the Horticulture/vegetable, oil plump and durian agriculture land.
Followed by the residential property with the volume of 552 unit and value RM 131.22 Million.
The highest residential property that was transacted in the market was Single storey terrace with
the amount of 174 unit and the lowest transaction in market was Townhouse, flat, and low cost
flat.

The total amount of development land that was transacted in the market was 136 unit with the
total value of RM 12.38 Million. For the commercial property, there are the total number of 73
unit that was transacted in the market with the total value of RM 31.39 million. The highest
number of the commercial property that was transacted is ½ storey shop with the amount of 40
unit. While the lowest commercial property that was transacted was SOHO, Shopping Complex
and Service Apartment. While the lowest Sub-sector properties that was transacted in the market
was Industrial Property where there are only 4 unit that was transacted with the total value of
RM 0.96 Million. Vacant land was the highest industrial property that was transacted while the
lowest one was Industrial complex, Warehouse and Industrial Unit.

PROPERTY MARKET OVERVIEW

Residential property purchases fell in the first quarter of 2021, down 44.7 percent year on year
compared to first quarter of 2020. Regarding concern about a return of Covid-19 cases as well as
a stronger than anticipated gross domestic product this quarter performance contributes to
decreased consumer trust in the market.

Despite this, First Home Buyer (FBH) transaction increase to 61.2 percent this quarter, aided by
incentives such as The My First Home Scheme and The Home Ownership Campaign (HOC).
Terrace house were the most popular choice among FBH for who are searching for the properties
with a little extra space in less densely populated area. This quarter, buyer demand has also
dipped marginally, with larger space and sub-sale unit taking precedence.

There also some change that happened in the property market caused by the suddenly outbreak
of Covid-19, Movement Control Order and other more. The first change that happened in the
market is property priced between RM 300,000 and RM 500,000 was the most popular this
quarter. In comparison, less than a quarter of total purchase ranged from RM 150,000 to RM
300,000. Secondly, buyer favored landed property over high rise unit, indicating a growing
desire for more space in light of periodic lockdown and work from home regulation caused by
the Covid-19 outbreak. Terrace house remained the top option for buyer in a few region such as
Klang Valey accounting for 52.7 percent, 74.8 percent in the Selangor region and Johor
accounting 39.9 percent of the transaction in the property market.

Lastly, the change that are happening in the market is the demand or desire for the additional
development is still low. Those who did purchase new unit preferred terrace house as well as
higher end unit such as semi-detached house and service apartment. As we are about to enter the
new year 2022, the property market faces new hurdles, where the impact of FCMO or MCO that
will happened again if the total cases rise above or worst case a total lockdown to combat the
Covid-19. However, as the market react to the need of the National Recovery Plan, both the
economy and customer sentiment are projected to improve, increasing overall and later in the
year, market activity will pick up.