Built but unwanted: 33,094 homes worth RM17.78bil left unsold
KUALA LUMPUR: Malaysia’s residential property market is facing a growing overhang of completed homes, raising concerns that the widening gap between what developers are building and what Malaysians can afford, or are willing to buy, could worsen without targeted intervention.
Malaysia's residential property market is grappling with a significant surplus of completed homes, with 33,094 units worth RM17.78 billion remaining unsold in the first half of 2026. This is a notable increase from the previous year, posing concerns about the widening gap between housing supply and what Malaysians can afford or are willing to purchase.
Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted the impact of this overhang, particularly in the commercial segment, where unsold serviced apartments have surged to 23,375 with a total value of RM19.33 billion. The Real Estate and Housing Developers Association Malaysia (Rehda) president, Datuk Zaini Yusoff, suggested introducing a special Home Ownership Campaign (HOC) 2027 to help clear completed stock and recycle capital into new projects.
However, Olive Tree Property Consultants CEO Samuel Tan argued that the issue is more complex, rooted in structural factors such as stagnant median household income, difficulties in securing bank loans for first-time buyers, and location-based clustering of unsold properties. Tan noted that location, layout, and connectivity are now more significant drivers of unsold stock than price alone, with a shift in buyer preferences and changing tastes also contributing to the problem.
Despite a relatively robust overall property market, the oversupply of completed homes remains a pressing challenge, with an overall transaction value of RM105.12 billion in the first half of 2026, of which 59.3% were residential properties. The data gap in determining homeownership rates by age further complicates policy interventions aimed at addressing affordability pressures among younger Malaysians and first-time buyers.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
