Report & Data Visualisation: Shaza Al Muzayen
Editor: Sakina Mohamed
KUALA LUMPUR, Oct 10 (Bernama) -- Johor has the dubious honour of being the state with the highest housing overhang from 2018 to 2022.
For those unfamiliar with the term, “overhang” refers to properties that have been completed and are ready for use but remain unsold for at least nine months after their launch.
In the case of Johor, data from Malaysia’s National Property Information Centre (NAPIC) showed that the state consistently reported a significant overhang in housing properties from 2018 (6,066 units) to 2020 (7,030 units).
While Johor had the second-highest overhang in 2021 (6,089 units), just behind Selangor (6,095 units), it returned to the top spot in 2022 with 5,258 unsold units. Following Johor in 2022 were Selangor (3,698 units), Penang (3,593 units), and Kuala Lumpur (3,429 units).
Low local demand and an oversupply of housing are factors that may have contributed to the ongoing situation in Johor, Selangor, Penang, and Kuala Lumpur.
“These states are currently experiencing significant economic growth and rapid development.
“In such circumstances, property development, including housing, often see substantial expansion,” explained Dr Hassanudin Mohd Thas Thaker, an Associate Professor at the Department of Economics and Management Sciences of International Islamic University Malaysia.
Hassanudin adds that the increasingly competitive housing market in those states often lead local developers into adopting drastic measures to keep their businesses relevant.
“Our local developers find themselves in competition with foreign developers, which may lead them to adopt aggressive development strategies.
“These strategies can result in an overabundance of newly constructed housing units, exceeding actual demand in the region,” he said.
-- BERNAMA