Residential Overhang Volume, Value Down In Q3 2021

November 24, 2021

Residential Overhang Volume, Value Down In Q3 2021

Malaysia registered a slight decline in the number of unsold completed homes during the third quarter of 2021 (Q3 2021).

Deputy Housing and Local Government Minister Datuk Seri Ismail Abdul Mutalib told the Dewan Rakyat on Tuesday (23 November) that there were 30,290 unsold completed residential units worth RM19.75 billion nationwide in Q3 2021, reported Bernama.

Comparatively, there were 31,112 unsold housing units worth RM20.1 billion in Q2 2021, according to National Property Information Centre (NAPIC) data.

This means that residential property overhang volume dropped 2.64%, while overhang value fell 1.74% in Q3 2021 from the previous quarter.

“Although not obvious, there is a drop in the number of unsold houses after some developers reduced prices or gave discounts to clear the overhang in supply amidst the uncertain economy,” he said as quoted by Bernama.

“This is proven with the drop in the house price index in the third quarter (2021) to 198.6 points compared to the third quarter of 2020 at 199.9 points, representing a drop of 0.7%.”

The deputy minister made the statement in response to Datuk Ahmad Jazlan Yaakub, who asked about the number of unsold homes as of September.

 

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