PETALING JAYA (June 29): The Malaysia property market is expected to see a surge in supply of residential properties in the near future as the number of unsold residential units from launched projects that are under construction and those yet to be constructed, have climbed in 1Q2018.

The National Property Information Centre (Napic) 1Q2018 property market status report released on June 22 showed there were a total of 144,927 unsold residential units under construction and those that have not started construction.

Compared with 1Q2017, the total number has increased 5% or 7,026 units from 137,901 units then. The number of unsold units include Small Office Home Office (Soho) and serviced apartment units.

Although the number of unsold properties under construction in 1Q2018 declined 1.5% to 106,929 units from 108,515 units recorded in the same period last year, the number of unsold units that have yet to start construction have surged 29% y-o-y or by 8,612 units to 37,998 units in the first quarter this year.

Of the number of unsold units under construction, 42% or 45,037 of the units were serviced apartments, 22,572 units or 21% were condominiums while another 22,539 units were terraced houses (21%).

States that recorded the highest number of unsold under construction units were Johor (37,637 units), Selangor (24,345) and Kuala Lumpur (14,074).

Johor saw a total of 26,181 unsold serviced apartment units under construction and 5,407 units of terraced houses still waiting for buyers.

Most of the serviced apartments were priced between RM250,000 and RM500,000 (14,709 units) as well as those priced above RM1 million (5,239 units); unsold under construction terraced houses were mostly priced from RM500,000 to RM750,000.

In Selangor, a total of 8,501 units of serviced apartments and 6,026 units of condos under construction remained unsold in 1Q2018.

Most of these serviced apartments were priced between RM250,000 and RM500,000 (4,723 units) followed by those within the price range of RM500,000 to RM750,000 (2,754 units); condos that remained unsold were those priced RM1 million and above.

Kuala Lumpur recorded the third highest number of unsold and under construction units with 14,074 residential properties. Of these, 7,824 units were serviced apartments mostly priced between RM500,000 and RM750,000.

Notably, the number of unsold under construction Soho units have tripled to 1,430 units from 330 units in 1Q2017. Most of these properties were priced between RM750,000 and RM1 million.

Although unsold under construction units declined y-o-y, unsold units that have yet to start construction have surged 29% y-o-y or 8,612 units to 37,998 units in the first quarter this year.

Of these, 57% or 21,704 units were serviced apartments and 28% or 10,796 units were condominiums.

Kuala Lumpur topped the list with a total of 23,549 properties unsold unconstructed units, followed by Johor (6,007 units) and Selangor (3,044 units).

In KL, over 50% of the unsold unconstructed properties are serviced apartments which are selling between RM250,000 and RM500,000. A total of 6,649 units out of the 11,151 launched units are still in the market.

Condominium units in the RM250,000 to RM300,000 price range are also facing difficulties in securing buyers as 3,892 units of the 5,816 launched condos in this segment remained unsold and yet to begin construction.

Meanwhile, more than 80% or 5,091 properties of the unsold units that have not begun construction in Johor were mostly serviced apartments (4,476 units) in the price range of between RM250,000 and RM500,000.

For Selangor, unsold unconstructed units were mainly serviced apartments (1,154 units) priced between RM250,000 and RM500,000.

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