Report & Data Visualisation: Shaza Al Muzayen
Editor: Sakina Mohamed
Infographics: ‘Atiqah Dalili Zainodin
KUALA LUMPUR, Apr 18 -- Malaysia saw a decline in the number of residential units in overhang from 2021 to 2022, according to data shared by Deputy Finance Minister Datuk Seri Ahmad Maslan.
“Overhang” refers to properties that have been completed and are ready for use but remain unsold for at least nine months after their launch.
The total number of residences in overhang decreased from 36,863 units in 2021 to 27,746 units in 2022, with a corresponding reduction in value from RM22.79 billion to RM18.41 billion.
The overhang is mainly attributed to two factors: the inability of people to afford homes and a mismatch between housing supply and demand in certain locations. While some states, like Melaka, have managed to align affordable housing with buyers' purchasing power, other states continue to face challenges with housing affordability.
In addition to the residential overhang, there is also the issue of unsold properties.
Unsold properties differ from those in overhang and are classified in two ways:
1. Unsold (Not Constructed): Properties that have received building plan approval but have yet to start construction, and remain unsold for up to nine months after being launched.
2. Unsold (Under Construction): Properties that have received building plan approval and begun construction but have not been sold within nine months of their launch.
In 2022, Johor recorded the highest number of unsold units at 5,258, valued at RM4.33 billion. Selangor followed with 3,698 units (RM2.74 billion), and Penang ranked third with 3,593 units (RM2.74 billion).
Most of the unsold residences were priced between RM500,000 and RM1 million (9,323 units), followed by homes priced between RM300,000 and RM500,000 (8,128 units), and those below RM300,000 (6,509 units).
Commenting on the issue, Ahmad emphasised the need for developers to prioritise affordability.
"The affordability in a state may be a house that is priced at RM200,000, but what is being built costs RM250,000.
“Housing developers should assess the people’s affordability in a particular state before embarking on housing projects,” he said.
-- BERNAMA