Residential Property
Malaysia's Property Overhang in 2025: What Rising Unsold Units Mean for Buyers
Unsold completed residential units rose 31.6% in 2025 to 30,471 units worth RM17.73 billion. Here's what the overhang data actually means, state by state and type by type.
By PropPlace.my Editorial · Published 22 Jul 2026 · Updated 22 Jul 2026
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.
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 closely at 12.1% (3,705 units), 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 overhang is concentrated in affordable homes
Here's the detail worth paying attention to if you're shopping in the affordable segment: homes priced below RM300,000 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).
In other words, the overhang isn't a luxury-market problem — it's most concentrated at the lower end of the market, precisely the segment where NAPIC also reports the strongest buyer demand (52.3% of all 2025 residential transactions were for homes under RM300,000). That combination suggests a mismatch of location or product-type rather than a lack of overall demand for affordable housing.
Supply still in the pipeline is growing too
The overhang isn't limited to completed stock. 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.