KUALA LUMPUR: KUALA LUMPUR: Malaysia's residential property overhang worsened in the second quarter of 2026, with 33,094 completed homes worth RM17.8 billion left unsold nationwide, according to the Housing and Local Government Ministry (KPKT).
The figure represents a 0.9% increase, or 293 units, from the 32,801 overhang units valued at RM16.37 billion recorded in the first quarter of the year.
Housing and Local Government Minister Nga Kor Ming said the persistent glut underscores an enduring structural mismatch between property developers' offerings and buyers' realistic purchasing power.
"This figure indicates that the residential property overhang remains a persistent challenge in the country's housing market," Nga stated in a written parliamentary reply to Datuk Seri Dr Ismail Abd Muttalib (PN-Maran).
Ismail had asked for the latest data on completed but unsold residential properties across the first half of 2026.
Nga attributed the glut primarily to disconnects in supply and demand, pointing out that projects frequently miss the mark on volume, specifications, and local income compatibility.
To curb further overhang, the ministry is rolling out the National Housing Policy (DRN) 2026–2035, which shifts development planning toward a targeted, data-driven framework.
Nga said future project approvals will incorporate granular metrics, including local median income levels, regional housing deficits, and verified market demand by locality.
He added that KPKT will deepen coordination with state governments, local councils, and property developers to prevent market saturation and ensure future supply delivers accessible, quality, and liveable housing for the public.