Malaysia Residential Property Overhang: State of Play H1 2026

Residential overhang kept climbing in H1 2026, reaching 33,094 completed units worth RM17.78 billion, extending an upward trend that started in H2 2024.

• This is the fourth straight half-year increase: national overhang has risen every period since H1 2024 (22,642 units), through 23,149, 26,911 and 30,471, to 33,094 now.
• NAPIC attributes this to persistent caution in the market, among both developers (fewer aggressive launches) and buyers (weaker take-up), not to financing costs: the central bank has held its policy rate steady at 2.75% throughout the period.
• Johor now has the highest residential overhang (4,222 units, 12.8% of the national total), just ahead of Selangor (4,185 units) and Perak (4,075 units).
• Condominiums and apartments remain the biggest share of unsold stock at 42.8%, followed by terraced houses at 34.9%.
• Affordable homes are not spared: units priced below RM300,000 make up 37.3% of unsold completed stock, the largest single price band.
• Who carries the exposure: developers holding condominium and apartment stock in Johor, Selangor and Perak, the same states and property type driving most of the national total, and by extension the banks financing that inventory.