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UPDATE: Number of built unsold home jumps almost 20% in 1H2018

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KAJANG (Oct 11) : The slow market absorption of properties has led to the increase in residential overhang which totals 29,227 units worth RM17.24 billion, an increase of 18.1% in terms of volume and 10.2% in terms of value in 1H2018 from last year, based on the Preliminary Property Market Brief 2018 report launched today.

The biggest category of overhang units are residential properties priced from RM500,000 to RM1 million with a total of 7,525 units valued at RM 5.17 billion.

Residential market overhang units by price range (source: Napic)

Price Range 2015 2016 2017 1H2018
RM50,000 or less 414 456 1,023 873
RM50,0001 - RM100,000 1,348 1,299 1,430 1,672
RM100,001 - RM150,000 603 822 1,056 914
RM150,001 - RM200,000 907 975 2,069 2,670
RM200,001 - RM250,000 888 920 1,303 2,320
RM250,001 - RM300,000 1,213 1,358 1,648 1,935
RM300,001 - RM400,000 1,006 1,472 4,469 4,983
RM400,001 - RM500,000 846 1,438 2,585 2,516
RM500,001 - RM1 million 1,967 3,943 5,612 7,525
More than RM1 million 971 2,109 3,543 3,819
Malaysia 10,163 14,792 24,738 29,227

Johor leads with the highest number of residential properties with overhang status, with 5,988 unsold units followed by Selangor (4,694 units) and Penang (3,958 units).

In the southern state, 40.3% of the overhang units are made up of condominiums and apartments with 1,946 units of them priced from RM500,000 to RM1 million.

A total of 4,604 overhang units came from the Johor Bahru district.

Residential market overhang units by value (RM mil) (source:Napic)

Price Range 2015 2016 2017 1H2018
RM50,000 or less 15.77 18.55 40.74 36.27
RM50,0001 - RM100,000 108.6 81.41 112.29 131.65
RM100,001 - RM150,000 78.19 102.49 152.13 129.66
RM150,001 - RM200,000 157.53 166.87 387.88 485.53
RM200,001 - RM250,000 201.48 192.41 296.68 548.69
RM250,001 - RM300,000 342.22 303.69 457.47 532.3
RM300,001 - RM400,000 369.51 469.92 1,548.62 1,742.50
RM400,001 - RM500,000 388.35 604.91 1,186.56 1,140.42
RM500,001 - RM1 million 1,311.8 2,643.54 4,017.50 5,172.06
More than RM1 million 1,945.13 3,976.64 7,444.94 7,319.21
Malaysia 4,918.56 8,560.43 15,644.83 17,238.36

The property market recorded a marginal decline in the first half of 2018 (1H2018), with 149,889 transactions worth RM67.74 billion, recording a decrease of 2.4% and 0.1% compared to 1H2017 which recorded 153,526 transactions worth RM67.83 billion.

On the demand side, mixed trends are also seen in the indicators of residential and non-residential properties.

The total amount of loans applied for the purchase of residential property decreased by 3.1% compared with 1H2017 while loan approvals fell by 0.2%.

Meanwhile, the application and approvals of loans for non-residential properties increased by 14.2% and 6.6% respectively.

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