Johor’s property overhang remains high


THE state of Johor remains as the largest contributor to the national property overhang, which stood at 56,000 as of the third quarter of 2021 (3Q21).

Rahim & Co International Sdn Bhd director of research Sulaiman Saheh said affordability is still a major concern in the property market.

He added that the supply overhang remains a thorn in the flesh for the Malaysian property market and the number of unsold properties in the market is still at a very high level.

“Right now, as of 3Q21, there are 56,000 units which consist of residential as well as commercial properties amounting to RM41 billion.

“Johor still accounts for the large chunk of the overhang units, followed by Kuala Lumpur with 10,000 units, Selangor with 6,900 units and Penang with 5,000 units,” he said during the presentation of Rahim & Co’s Property Market Review 2021/2022 publication in Kuala Lumpur today.

Sulaiman noted that the 56,000 units excludes the properties that are under construction, which means the numbers may be higher.

Previously, Deputy Minister of Housing and Local Government Datuk Seri Ismail Abdul Mutalib has noted that a total of 30,290 units of completed houses worth RM19.75 billion nationwide were unsold as of 3Q21, compared to 31,112 units worth RM20.1 billion in 2Q21.

He said this was a decline of 2.64% in number and 1.74% in value of unsold units in 3Q21 compared to 2Q21 based on the data from National Property Information Centre (NAPIC).

He added that the drop in the number of unsold houses was after some developers reduced prices and gave discounts to clear the overhang in supply amid the economic uncertainty.