Housing supply versus population in Malaysia

Many Malaysians want to buy a house but cannot afford to pay the prices developers want

By FARA AISYAH / Pic By TMR File

THERE’S a positive correlation between housing supply and population. Population growth, which includes the growth in the number of households, will generate demand for housing and houses are built based on demand expectations.

The tricky part to this equation is some developers tend to overrate the population growth and over build which results in an overhang situation.

On the other hand, the supplies of properties help to attract and increase the population in a particular country or state through migration.

The choices in the market might also influence families to upgrade or acquire another house in a new location.

As far as the Malaysian residential property market is concerned, there is a general mismatch between affordability and homes built and offered in the market today.

The Home Ownership Campaign 2019 has been launched this year to help buyers and sellers but without much success.

Many Malaysians want to buy a house but cannot afford to pay the prices developers want, thus leading to an oversupply in certain locations.

The Malaysian Reserve (TMR) looks at the housing supply and population of each state in the country.

Federal Territory of Kuala Lumpur (KL)
The capital of Malaysia has a total of 760,958 housing stock as at the first quarter of 2019 (1Q19), almost half of its 1.8 million population as at 2018.

The number includes the existing stock, incoming and planned supply of residential properties as well as serviced apartments according to the National Property Information Centre (Napic).

KL has 482,099 existing stock of residential properties, with 37,819 incoming units and 67,177 planned homes.

For serviced apartments, KL has 60,441 of its existing units, 31,455 incoming units and 82,057 planned units.

As such, KL is ranked fourth on the overhang status as at 1Q19 with 4,731 units worth RM4.6 billion.

Putrajaya
Putrajaya has a small population of 90,000 people according to the Statistics Department of Malaysia as at 2018. It does not have much housing stock to offer, and does not face a severe overhang situation.

As at 1Q19, Putrajaya has a total of 21,574 housing stock; including 12,612 existing supply, 7,500 incoming supply, and 530 planned units of residential properties.

In addition, Putrajaya does not have any existing supply of serviced apartments. However, the administrative centre has 746 incoming supply of serviced apartments and 186 planned supply of serviced apartments.

The state’s overhang status as at 1Q19 is at 25 units of residential units worth RM88.37 million.

Labuan
Labuan also has a small population of 100,000 people. It does not have an overhang problem and does not have any stock of serviced apartments. As far as residential properties data goes, Labuan has 12,530 units of existing stock, 612 incoming supply and 14 planned supply.

Selangor
Selangor is the most populous state with 6.47 million people. Hence, it is no surprise the state has the second-highest overhang situation.

As of 1Q19, Selangor has 8,136 overhang units worth RM6.33 billion and a total 1,864,259 housing stock.

It has 1,540,905 existing stock of residential properties, 118,603 incoming and 78,099 planned supplies.

As for serviced apartments, Selangor has 60,805 existing units, 39,654 incoming and 26,193 planned supply, Napic noted.

Johor
Johor tops the overhang situation in the country as at 1Q19 with 16,844 units worth RM14.44 billion.

The state has a population of 3.74 million people and a total of 1,120,527 housing stock as at 1Q19.

Johor has 818,326 existing stock of residential properties, in addition to 68,263 incoming and 88,665 planned supplies.

It also has 63,328 existing stock serviced apartment; 23,666 incoming and 58,279 planned supply of serviced apartments.

Penang
The island has a population of 1.77 million people, and a total of 590,582 housing stock as at 1Q19.

The number includes 511,613 existing stock; 42,913 incoming and 24,929 planned supply of residential properties.

Penang also has 3,234 existing stock of serviced apartments, while 2,990 units are incoming and 4,903 units planned.

The state has 4,226 units of overhang worth RM3.66 billion as at 1Q19.

Perak
Perak is the fifth most populous state in Malaysia with 2.5 million populations. As at 1Q19, the state has a total of 559,393 housing stock.

It has 482,055 existing stock of residential properties, 33,826 incoming units and 41,346 planned supply.

For serviced apartments, Perak has 682 existing stock, 783 incoming and 701 planned supply, Napic’s data revealed.

The state has 6,332 overhang units worth RM1.98 billion as at 1Q19.

Negri Sembilan
Negri Sembilan has a population of 1.13 million people and a total of 342,123 housing stock as at 1Q19.

Negri Sembilan’s housing stock includes 272,100 existing residential units, 21,700 incoming and 33,940 planned supply.

It also has 12,076 existing serviced apartments and 2,307 planned supply.

The state’s overhang stock stands at 1,474 units valued at RM847.51 million in the same period.

Melaka
Melaka has a population of 920,000 people. As at 1Q19, the state has a total of 243,910 housing stock and 1,888 overhang units worth RM791.43 million.

The state’s housing stock consists of 193,367 existing residential units, 18,475 incoming and 17,076 planned supply.

It also has 4,777 existing units of serviced apartments, 5,301 incoming and 4,914 planned supply.

Kedah
Kedah has 2.16 million people and a total of 361,601 housing stock which is made up mainly of residential properties.

As at 1Q19, the state has 330,701 existing residential units, 16,439 incoming and 13,428 planned supply.

The remaining 637 units are existing stock of serviced apartments.

During the quarter, Kedah recorded 3,851 overhang units valued at RM1.14 billion.

Pahang
Pahang is the third-largest state in Malaysia and has a population of 1.67 million.

The state has a total of 340,814 housings stock as at 1Q19, including 275,737 existing homes, 22,015 incoming and 35,706 planned homes.

It also has 3,462 existing units of serviced apartments, in addition to 1,373 incoming and 2,521 planned supply.

Pahang has 1,833 overhang units worth RM770.44 million as at 1Q19.

Terengganu
Terengganu has a total of 130,329 housing stock to cater to its 1.23 million populations.

The number includes 100,637 existing residential units, 16,654 incoming and 12,754 planned supply.

The state does not have existing stock of serviced apartments, however, 152 units are incoming and 132 units are being planned as at 1Q19.

In terms of overhang, Terengganu has 602 units valued at RM248.81 million.

Kelantan
Kelantan has 1.86 million populations and a total of 97,678 housing stock as at 1Q19.

The stock includes 80,626 existing residential units, 12,648 incoming and 3,466 planned supply.

It also has 520 existing units of serviced apartments and 418 planned supply.

Kelantan has 670 overhang units worth RM280.5 million as at March 2019.

Perlis
Perlis is the smallest state in the country with a population of 250,000.

It has a total of 28,992 housing stock as at 1Q19 which is made up of 26,008 existing; 1,013 incoming and 1,971 planned supply of residential properties. It does not have any stock of serviced apartments, Napic noted.

Perlis has 94 overhang units valued at RM36.68 million as at 1Q19.

Sabah
Sabah is the second-largest and most populous state in Malaysia with 3.9 million people.

It has a total of 226,912 housing stock, including 216,232 existing; 25,652 incoming; and 22,422 planned supply of residential properties.

The state also has 1,215 existing serviced apartments, with 350 incoming and 1,041 planned supply.

As at 1Q19, Sabah has 1,483 overhang units worth RM1.08 billion.

Sarawak
Sarawak is the largest state in Malaysia, but it only has a population of 2.79 million people.

The state has a total of 285,386 housing stock as at 1Q19, made up of mainly residential properties.

It has 256,215 existing stock of residential units, in addition to 22,203 incoming and 6,113 planned units.

For the serviced apartments segment, the state has 427 existing and 428 incoming supply.

As at the quarter, Sarawak has 1,889 overhang units valued at RM923.47 million.