When 2016 wrapped up, many were anticipating worse property market conditions for 2017. The market has indeed remained soft for 2017 nonetheless, performance was better than our expectation. Overall, looking at first half of 2017, there were over 153,000 transactions worth RM67 billion, a decline of 6% in volume but rise of 5% in value compared to 1H 2016. Bearing the pressure of possible worse market conditions in 2017, many developers have undertaken proactive strategies to mitigate the risks. For instance, residential transactions declined by 14.5% y o y back in 1H 2016, the number diminished to only single digit decline of 7% in 1H 2017. This could be attributed to the fact that developers have restrategised their plan by developing products at more affordable price level in an attempt to correct the price income mismatch which has been prevalent in the residential market. More strategic adjustment on products, pricing and sale strategies may be observable in 2018.