PETALING JAYA: There was a 10.3% drop in the number of overhang properties in 2024 compared with the previous year, according to the Real Estate and Housing Developers’ Association Malaysia (Rehda).
Overhang properties are unsold properties that are completed but remain vacant.
Its president Datuk Ho Hon Sang said there had been a decline in the number of overhang properties in the country over the past several quarters.
“In 2023, the volume of unsold units stood at 25,816 while in 2024 the number decreased to 23,149 units.
“The total value of overhang properties saw a significant drop, from RM17.68 billion in 2023 to RM13.94 billion last year,“ he said at a media briefing yesterday.
Earlier, Ho attended a meeting along with his predecessor Datuk N.K. Tong and the association’s deputy president Datuk Zaini Yusoff at Rehda’s headquarters.
Ho said based on a Rehda survey, the majority of unsold completed residential units are priced between RM400,000 and RM500,000.
“End-financing loan rejections and low demand were cited as the main reasons for the property overhang. The survey also found that loan rejections were primarily due to buyers’ ineligible income, inadequate financial documentation and adverse credit history.”
He said most overhang Bumiputera properties are priced between RM300,000 and RM500,000, with 72% of them having been completed in the past 36 months.
In the recently published Property Market Report 2024, a total of 420,525 properties were sold last year, marking a decade-high record, with 75,784 of them being residential units. Notably, residential property prices saw a marginal increase of 3.3%, bringing the average price to RM486,678.
Ho said most developers reported a 3% to 6% rise in overall business costs during the second quarter of 2024.
He added that this increase was driven by several factors, including higher material prices, inconsistent supply and rising labour wages.
“We understand that the government is doing its best to address issues related to building materials and labour. We hope they recognise that the longer these challenges persist, the more costly they become.”
