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Malaysia is facing a growing property overhang as the gap widens between what developers are building and what locals can afford
According to the National Property Information Centre (NAPIC), 33,094 completed residential units worth RM17.78 billion remained unsold in the first half of 2026.
This marks an increase from the second half of 2025, when 30,471 unsold units worth RM17.73 billion were recorded.
According to the New Straits Times, unsold serviced apartments also rose to 23,375 units worth RM19.33 billion, with more than 55% priced between RM500,001 and RM1 million.
Malaysians aren't buying completed homes.
Image via STR/NIK ABDULLAH NIK OMAROlive Tree Property Consultants founder and chief executive officer Samuel Tan noted that stagnant incomes and loan rejections remain major barriers
"Median household income has not kept pace with building costs, so the bulk of the new supply clusters above what 'first-time-house-buyers' can afford, even as the RM300,000 and below segment is classified as 'affordable' by price tag," he said.
Tan added that loan rejections from Bank Negara for non-fixed-income earners create another major choke point.
Legacy developments, poor locations, and weak connectivity are also driving up unsold numbers
National House Buyers Association (HBA) honorary secretary-general Datuk Chang Kim Loong previously told Business Times that homes priced below RM300,000 are failing to convert into purchases.
Chang explained that the country faces a shortage of well-located, financeable, and genuinely affordable homes.
