Friday 29 Mar 2024
By
main news image

This article first appeared in The Edge Malaysia Weekly on September 24, 2018 - September 30, 2018

WHILST the number of unsold residential properties is rising across the country, the overhang is more acute in some states than others.

Pulau Pinang is amongst the worst affected states, especially when comparing current unsold inventory to five years back, made worse by increased new launches in 2016-2017. It also has the highest proportion of unsold stock in the more than RM1 million category. This is unsurprising, as developers here have increased focus on building pricier houses since 2014. (See Chart A )

Johor too has witnessed sharply higher inventory levels, more than triple the number in 2012. There was a big jump in unsold properties above RM250,000 where most new launches are priced. Noticeably, new launches below RM250,000 have fallen steadily in recent years. (See Chart B)

Meanwhile, unsold properties are on the rise in Kuala Lumpur due, in part, to substantially higher number of new launches in 2017. More than half of the current unsold stock are priced between RM500,000-RM1 million. This is not surprising as the average transacted prices in Kuala Lumpur are, consistently, the highest in the country.

Similarly, the bulk of unsold properties in Selangor are in the RM500,000-RM1 million (42%) and RM250,000-RM500,000 (38%) categories. The state has also seen an increase in new launches last year. (See Charts C and D)

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

      Print
      Text Size
      Share