Malaysia’s property market continues to grapple with a significant backlog of unsold Bumiputera-reserved homes, particularly in the mid-range price segment. Data from the Real Estate and Housing Developers’ Association (Rehda) shows that 77% of these unsold completed units are priced between RM300,001 and RM500,000, with nearly three-quarters remaining on the market for over three years. Industry experts attribute this stagnation to a persistent imbalance between housing supply and buyer demand in this category.
The situation presents challenges for both developers and the broader housing sector, according to Rehda president Datuk Ho Hon Sang. Recent surveys indicate that sales performance declined in the second half of 2024, with only 28% of units sold compared to 47% earlier in the year. Among the unsold properties, mid-range homes dominate, with 43% priced between RM400,001 and RM500,000, while luxury units above RM1 million account for a smaller share.
Further analysis reveals that high-rise residential units make up the majority of unsold inventory, comprising 61.2% of the total. Terraced houses and other property types follow at 23.6% and 15.1%, respectively. Older properties, particularly those aged five to 10 years, form the largest portion of stagnant stock, suggesting that newer developments may be faring slightly better.
The National Property Information Centre reports that Malaysia’s unsold residential inventory reached 23,149 units in 2024, valued at RM13.95 billion. While mid-range homes remain the most affected, lower-priced properties under RM300,000 also contribute significantly to the unsold stock in both ongoing and planned developments. This trend highlights the need for strategic adjustments in housing policies and market alignment to address the persistent oversupply.