Malaysia's Property Overhang in 2025: What Rising Unsold Units Mean for Buyers

Historical full-year 2025 data. Content corrected 18 October 2026; these figures are not a current-market snapshot.

Not every 2025 property statistic pointed upward on the demand side. NAPIC's Property Market Report 2025 recorded 30,471 unsold completed residential units nationwide, worth RM17.73 billion — a year-on-year jump of 31.6% in volume and 27.2% in value compared to 2024's 23,149 units worth RM13.94 billion. NAPIC describes this as reflecting "moderate market absorption" — not a crisis, but a clear signal that supply in some segments and locations is running ahead of buyer demand.

NAPIC defines overhang as completed units with a completion/occupation certificate that remain unsold more than nine months after launch. Unsold units under construction and not yet constructed are separate categories. Reported overhang value uses developers' average offered selling prices multiplied by unsold units; it is not transaction proceeds, debt or a direct measure of capital tied up.

Where the unsold stock is piling up

Perak recorded the highest number of unsold completed residential units in the country, accounting for 12.9% of the total (3,943 units). Johor followed at approximately 12.2% (3,705 units, calculated from the national total), with Selangor contributing another 11.6% (3,547 units). Measured by value rather than volume, the picture shifts: Johor tops the list at RM3.3 billion, followed by Selangor (RM2.62 billion) and Pulau Pinang (RM2 billion) — meaning Johor's unsold stock, while similar in unit count to Perak's, is tied up in considerably higher-value properties.

By property type, condominiums and apartments made up the largest share of unsold completed stock, at 47.1% of the national total (14,357 units). Terraced houses were the second-largest category, at 30.5% (9,293 units).

The lowest price band is the largest individual category

Here's the detail worth paying attention to if you're shopping in the affordable segment: homes priced RM300,000 and below made up the largest share of unsold completed stock, at 37.7% of the total (11,502 units). The RM300,001 to RM500,000 range came in second at 27.5% (8,381 units). Homes priced RM500,001 to RM1 million made up another 24.3% (7,401 units), and properties above RM1 million accounted for the remaining 10.5% (3,187 units).

The lowest price band is the largest individual category, but not a majority; overhang also includes 3,187 homes priced above RM1 million. NAPIC records 52.3% of 2025 residential transactions at RM300,000 and below. A location or product mismatch is one possible explanation for unsold stock alongside demand in that band, but national totals alone do not establish the cause.

Supply still in the pipeline is growing too

The wider unsold pipeline is also growing. Separately from completed overhang, unsold units currently under construction rose 18.8% to 72,384 units, up from 60,934 in 2024, with Selangor (20.5%, 14,832 units) and Perak (12.7%, 9,219 units) accounting for the largest shares. More strikingly, unsold units that haven't even started construction jumped by more than 70% to 14,625 units, up from 8,274 in 2024, concentrated mostly in Selangor and Kuala Lumpur. That's a meaningful build-up of future potential overhang, even before those units are completed.

What this means if you're buying or investing

For buyers, a rising overhang — especially concentrated in the affordable segment — often translates into more room to negotiate, particularly on completed units that have been sitting unsold for a while. Developers carrying unsold completed stock have a direct incentive to move it, whether through price adjustments, rebates, or bundled incentives.

For investors, the state-by-state and type-by-type breakdown matters more than the national headline number. A 31.6% national increase does not mean every state or product type is equally affected. Perak, Johor and Selangor together accounted for approximately 36.7% (11,195 / 30,471, calculated before rounding) of completed unsold units, while condominiums/apartments and terraced houses accounted for most of the stock by property type. Due diligence on a specific project's absorption history is far more useful than reacting to the national average.

Before committing to a purchase in an area with reported overhang, compare the project with the broader process in PropPlace.my's residential buying guide. Deal Intelligence can pull live listing comparables and NAPIC transaction data for the specific location and property type you're considering, while PropBot can help with quick area-level questions.

*Source: NAPIC Property Market Report 2025. Originally reviewed 22 July 2026; corrected 18 October 2026.*