PETALING JAYA: Over RM33 billion worth of homes across Malaysia are either stalled in abandoned projects or remain unsold, revealing a mismatch between supply and demand in the country’s property market.
Of the staggering figure, 30,371 units stemmed from abandoned projects by licensed developers, while a further 12,378 units were the result of developments by unlicensed companies.
The statistics were revealed in the Abandoned Housing Report published by the Real Estate and Housing Developers’ Association Institute (Rehda).
Adding to the concern, some unsold units fall within the affordable housing category – priced at RM300,000 and below – accounting for 15% of all unsold residential units nationwide. It points to a troubling trend – even price-controlled homes are struggling to find buyers.
The report said compounding the issue is the rising cost of construction materials, which has pushed developers to raise prices. Lower mid-range homes, which are typically priced between RM500,000 and RM800,000, have seen hikes of up to 20%, while homes above RM800,000 have increased by 12%.
Another major concern is the growing number of “sick housing” projects – developments that fail to meet the completion timelines specified in sale and purchase agreements. According to lastest data, 440 such projects have been identified, involving 68,325 housing units.
Selangor recorded the highest number of sick projects, with 111 developments involving 22,127 units. This was followed by the Federal Territory with 19 projects involving 11,102 units and Kelantan with 38 projects and 5,207 units.
The report added that many of the troubled developments fall within the RM200,001 to RM300,000 price range, representing 20% of all ‘sick’ projects. It warned that new buyers looking for homes priced at RM400,000 and below may find it increasingly difficult to secure timely delivery from developers.
“Based on the housing cost burden approach, homes priced between RM200,000 and RM400,000 are considered affordable for households earning between RM3,000 and RM6,999 per month.
“However, the developments remain vulnerable to project delays or abandonment,” the report said, adding that developers face financial feasibility issues for homes priced below RM100,000 targeted for lower-income groups earning below RM2,000. This has compounded the housing supply challenge.
The report also revealed that there are 111,929 abandoned and troubled residential units across 726 development projects in Malaysia.
“Selangor is the most affected state, with 46,097 units spread across 266 projects. It highlights the severity of the issue in the country’s most populous and economically
active state.”
Rehda emphasised that the delay and deterioration of housing projects, even in urban areas, point to significant weaknesses in project management, risk assessment, cash flow and regulatory oversight.
“If not addressed, it will place additional strain on the economy, undermine public confidence in the property market and worsen the nation’s housing affordability crisis.”
The report also revealed that there are 111,929 abandoned and troubled residential units across 726 development projects in Malaysia. - Amirul Syafiq/theSun
