Malaysia’s property market stays soft in 1H 2026 with nearly 60pc of developers reporting unsold units, Rehda survey finds

Malaysia's property market remained sluggish in the first half of 2026, with nearly 60% of developers reporting unsold units, according to a Real Estate and Housing Developers' Association (Rehda) Malaysia survey. Datuk Zaini Yusoff, Rehda's president, stated that while the industry experienced some activity, challenges persist in terms of unsold inventory and financing issues. The survey revealed that 59% of respondents had unsold stock as of June 30.

Unit launches remained relatively stable, with 15,834 units entering the market in the first half of 2026 compared to 15,841 units in the second half of 2025, a difference of just seven units. However, the number of units sold slightly increased to 5,260 units, representing a 3.2% rise from the 5,098 units sold in the previous six-month period. Consequently, the overall take-up rate slightly improved to 33.2% from 32.2% in the same period last year.

Performance varied across property types, with apartments and condominiums leading the market at a 58% take-up rate, followed by semi-detached and cluster homes at 30%. Sales were highest for apartments and condominiums at 3,032 units, while two-to-three-storey terrace houses accounted for 610 units. The majority of launches (53%) were priced between RM300,001 and RM500,000, primarily in Perak, Pahang, and Negeri Sembilan. Only 1% of units were priced at RM2.5 million and above.

The market remained dominated by domestic demand, with 98% of buyers being Malaysian citizens, and foreign buyers accounting for just 2% of sales. Younger buyers, aged between 29 and 44, comprised 70% of purchasers. However, the survey highlighted persistent concerns over unsold completed residential units, with 59% of respondents reporting such stock as of June 30.

The top reasons for unsold units included end-financing loan rejections (30%), high pricing (21%), and unreleased Bumiputera units (16%). Notably, 33% of these unsold units were priced at RM1 million and above. Zaini emphasized that end-financing remains a critical issue, with factors such as income eligibility, lower financing margins, and adverse credit histories contributing to loan rejections.