The number of unsold properties across the country by rose 18.1 percent year-on-year in 1H 2018 to 29,227 units, with their total value increasing by 10.2 percent to RM17.24 billion, reported the Sun Daily.
Data from the Valuation and Property Services Department (JPPH) revealed that most of the overhang comprised apartments and condos costing RM500,000 to RM1 million.
“(These two kinds of properties) contributed the most to the overhang with 11,602 units representing 39.7 percent of the total overhang,” said JPPH Director-general Nordin Daharom on Thursday (11 Oct) during the launch of Property Market Report for 1H 2018.
In particular, Johor continue to see the largest number of unsold property. Compared to 3,803 units a year ago, this grew to 5,988 units, accounting for 20.5 percent of the total overhang in Malaysia.
This is followed by Selangor (4,694 units) and Penang (3,958 units), where the volume of remaining stock increased from 3,664 units and 2,041 units respectively. In particular, Kuala Lumpur’s unsold residential properties surged from 746 units to 2,350 units.
In addition, property developers launched 37,723 houses in the first half of the year, down from 40,615 in 1H 2017, while proportion sold fell from 22.4 percent to 19.2 percent. Average home prices also edged up by 1.7 percent from RM401,905 to RM408,774.
But the number of property sales dipped 2.4 percent from 153,526 units in 1H 2017 to 149,889 units, while overall deal value slid 0.1 percent from RM67.83 billion to RM67.74 billion.
Moreover, loan applications and loan approvals to buy houses respectively declined by 3.1 percent and 0.2 percent on an annual basis. On the other hand, that for non-residential properties increased by 14.2 percent and 6.6 percent.
Versus residential sales, the number of industrial and commercial properties sold rose by 3.5 percent and 3.8 percent respectively over the same period.
However, occupancy level of office premises fell from 83.3 percent to 82.8 percent, while that for retail space was unchanged at 79.9 percent.
As of 30 June, office supply reached 21.62 million sq m across 2,502 buildings, while there are 68 upcoming buildings with a combined area of 2.48 million sq m.
“I must emphasise that both issues, residential overhang and commercial space vacancy are pertinent issues that must be addressed by all parties, particularly local authorities and property developers. Both must exercise due diligence before arriving at development decision to avoid oversupply situation,” Nordin added.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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