The residential overhang in Penang more than doubled to 3,916 units worth RM3.82 billion in 2017 from 1,896 units worth RM1.47 billion in 2016, the Valuation and Property Services Department (JPPH) said in a report.
In its “Malaysian Property Market Report 2017”, JPPH said the majority of residential overhangs in the state were condominiums and apartments priced at above RM500,000 per unit.
Overhang units are defined as completed properties that remain unsold at least nine months after completion.
“Similarly, the unsold [units] under construction recorded a 13.9% increase with 9,249 units (2016: 8,119 units). The unsold not constructed [units], however, decreased significantly by 97.3% to 80 units in 2017 (2016: 2,918 units),” said the report.
The primary market recorded fewer new launches with 3,879 units in 2017, down by 31.3% against 5,646 units in 2016.
Sales performance for the new launches last year – of which condominiums and apartments accounted for 65% – was promising at 39%.
As at end-2017, there were 497,396 existing residential units with another 44,046 units of incoming supply and 24,597 units in planned supply.
