Penang recorded 2,400 unsold residential units in the first half of 2024 (1H2024), placing it fourth among states with the highest property overhang, according to the National Property Information Centre’s (Napic) report. The total value of unsold units in Penang amounted to RM2.02 billion, reflecting the ongoing challenges in the state’s property market, particularly in the high-rise condominium and apartment sectors, which dominate the overhang.

Kuala Lumpur topped the list in terms of value, with RM3.06 billion in unsold properties, while Johor came in second with RM2.80 billion. Despite Penang’s high number of unsold units, Perak had the largest volume, recording 4,161 units, accounting for 18.4% of the national total, followed by Johor (3,219 units) and Kuala Lumpur (3,051 units).

Overall, Malaysia’s property market overhang improved slightly compared to the second half of 2023 (2H2023), with the total number of unsold units falling by 12.3% and their value decreasing by 19.5%. The report showed 22,642 overhang units worth RM14.24 billion in 1H2024, compared to 25,816 units valued at RM17.68 billion in 2H2023.

Condominiums and apartments made up nearly 60% of the national overhang, with 13,535 unsold units. In Penang, Johor, and Kuala Lumpur, these high-rise properties accounted for 18.9% of the total unsold units across the country. Terraced houses contributed another 24.4%, or 5,524 units.

Napic also noted that the overhang was most prevalent in the affordable housing segment, with properties priced below RM300,000 making up 30.2% of the total. However, units priced between RM500,001 and RM1 million followed closely, contributing 29.6% of the overhang. Despite some improvement, the number of unsold properties under construction rose by 13.3%.