SECULAR TRENDS IN PROPERTY OVERHANG IN MALAYSIAN RESIDENTIAL AND SERVICED APARTMENTS

Abstract

In 2022, property overhang residential and serviced apartments recorded 51, 724 units valued at RM38.6 billion. Property overhang occurred when the excessive supply of property stocks in 2017 caused a drastic increase of overhangs, which is 31,102 units then carried forward to 2018, continuing to rise in the housing market. This scenario cannot be taken lightly by the government. Hence, this study aims to explore the secular trend in property overhang in Malaysian residential and serviced apartments over the past ten years. Data property overhang in the years 2013 to 2022 was obtained from the National Property Information Centre (NAPIC). The data property overhang will be analysed using time series analysis based on (1) state, (2) type of property, and (3) price range. Then, this study reveals that the top three (3) overhang residential and serviced apartment properties are in Johor (19,390 units), Federal Territory Kuala Lumpur (9,441 units), and Selangor (6,624 units). Condominiums/Apartments and serviced apartments are the highest type of overhang properties with a price range of RM500,001 – RM1,000,000. Thus, this study provides insight into the market performance of overhang residential and serviced apartment properties in Malaysia. This data will be used to examine the factors that influence the overhang of these properties.