THE number of completed but unsold homes, or 'overhang', showed an increase in the first half of this year, raising questions about the status of the country's property market.
According to an analysis report by TA Securities citing National Property Information Centre (NAPIC) data, the number of 'overhang' residential units increased by 16.3 per cent to 26,911 units.
In terms of value, it increased by 17.9 per cent to RM16.4 billion compared to the end of 2024.
However, the research firm stressed that this figure should not be seen as a danger signal.
"While this marks a reversal after several quarters of decline, we do not see this increase as anything to worry about," the report stated.
TA Securities gave two main reasons why the situation remains under control. Firstly, the current overhang is still below its pre-pandemic peak, which in 2018-2019 exceeded 30,000 units.
Secondly, and most importantly, property developers are now more disciplined in controlling the supply of new projects, reported Berita Harian.
"Since the supply surge of 2012-2015, developers have become more disciplined, with new residential supply coming in well below historical peaks.
"This discipline suggests that the current increase is unlikely to develop into a structural oversupply cycle," the report added.
The increase is interpreted as reflecting more selective demand among buyers, with affordable and strategically located projects continuing to be popular. - September 10, 2025
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