More Unsold Homes In Q1 Of 2018

There are more unsold homes in the country in the first quarter of 2018 compared to the previous quarter.

There were a total of 34,532 unsold and completed residential properties including serviced apartments and small-office home-office (Soho) units, worth RM22.67 billion in 1Q2018, the National Property Information Centre’s (Napic) revealed.

This is an increase of 40% from the 24,738 units (worth RM15.64 billion) recorded end of last year.

Of the latest figure, 29% or 9,848 units are serviced apartment units; 24% or 8,315 units are condos while 18% or 6,336 units are 2- and 3-storey terraced houses.

Six states, namely Kuala Lumpur, Johor, Selangor, Penang, Perak and Kedah, recorded a property overhang of more than 2,000 units.

Johor has the highest number of unsold properties at 12,722 units from 43,688 launched units, with an estimated value of over RM9 billion.

Of the unsold units, 56% or 7,165 units are serviced apartments with most of them priced above RM750,000, while 13%, or 1,592 are condo units.

The state with the second highest number of overhang units is Selangor with 5,199 units out of 29,112 launched units worth RM4.2 billion. Majority of these units are condominiums and serviced apartments with 1,611 and 1,046 units unsold respectively.

These unsold condominium units are mostly priced between RM400,000 and RM500,000 while most of the unsold serviced apartment units (638 units) were priced between RM250,000 and RM500,000.

Coming up third is Kedah with 3,593 unsold properties out of 7,455 launched units, with an estimated value of RM960 million. Unlike Johor and Selangor, most of these overhang units (50%) are 2- and 3-storey terraced houses with a majority of the unsold units priced between RM300,000 and RM400,000.

One-storey terraced houses in Kedah recorded the second highest unsold units (17%) with 596 overhang units. Majority of these units are priced in the RM100,000 to RM150,000 range.

Meanwhile, Penang and Kuala Lumpur recorded 2,610 and 2,543 unsold units worth RM2.16 billion and RM2.77 billion, respectively.

Condominium units priced above RM500,000 make up the majority of the overhang units in Penang.

In Kuala Lumpur, serviced apartments and condominiums made up the majority of overhang units, with 1,254 unsold serviced apartments and 1,056 unsold condominiums.

Close to half of the serviced apartments are priced above RM1 million while majority of the unsold condos are selling at above RM500,000.

Perak has a total of 2,197 unsold properties (worth RM881 million) made up mainly of condominiums priced between RM300,000 and RM400,000.

In East Malaysia, Sabah and Sarawak recorded 856 and 1,293 overhang units worth 349 million and RM555 million respectively.

[Source]