This article first appeared in City & Country, The Edge Malaysia Weekly on April 20, 2026 - April 26, 2026

For years, the narrative of Malaysia’s residential property market was dominated by the vertical gluts of Johor and the Klang Valley. However, the latest data suggest a shift in the country’s property landscape. Perak, surprisingly, has taken the lead.

According to the National Property Information Centre’s (Napic) Property Market Report 2025, a total of 30,471 unsold completed residential units (units that remain unsold after nine months) were recorded in 2025, valued at RM17.73 billion. The figures reflect a year-on-year (y-o-y) increase of 31.6% and 27.2% in volume and value respectively compared to 2024 (23,149 units worth RM13.94 billion).

The report highlights: “The performance by state witnessed Perak recording the highest number of unsold completed units in the country, dominating 12.9% (3,943 units) of the total. Johor followed closely with 12.1% (3,705 units) and Selangor contributed another 11.6% (3,547 units). In terms of value, Johor has the highest with RM3.3 billion, followed by Selangor (RM2.62 billion) and Penang (RM2 billion).”

Despite topping the list in unsold completed residential units, Perak ranked sixth in value at RM1.24 billion.

By property type, 2- and 3-storey terraced houses account for the majority of unsold units in Perak with 1,138 units, followed by 1,109 single-storey terraced units and 888 units under the condominiums/apartments category.

Meanwhile, properties priced between RM200,001 and RM300,000 account for the bulk of the unsold units, followed by those priced between RM300,001 and RM400,000.

Commenting on the situation in Perak, CBRE | WTW branch manager Ruwen Wong says the underlying causes vary by location.

“Factors such as pricing-location mismatch, demand weakness on certain types of properties in a particular area, slower regional economic expansion or weaker global economic performance as well as stringent financial constraints are some of the factors that contribute to the build-up of unsold units,” says Wong.

Rahim & Co Chestertons director of research and consultancy Sulaiman Saheh says Perak’s position stems from a combination of supply growth outpacing demand and structural limitations in the state’s housing market.

“Looking between 2020 and 2025, there was more new residential supply entering the market than there were primary transactions. This results in a mismatch between the scale of supply delivered and the depth of effective demand,” says Sulaiman.

He adds that Perak’s economy remains concentrated in traditional sectors such as manufacturing, agriculture and resource-based industries, which generally generate slower household income growth than larger metropolitan regions.

“Without a strong influx of new residents or higher-value economic activity, housing demand expands gradually. Consequently, when multiple developments are completed at around the same time, the market struggles to absorb them at the same pace,” says Sulaiman.

Among the districts in Perak, he notes Manjung has the highest number of unsold completed units, accounting for 1,460 units or 37% of the state total. It is followed by Kinta district, where Ipoh is located, with 1,035 units (26.2%) while Hilir Perak contributed another 422 units (10.7%).

Together, these three districts account for almost 74% of Perak’s total unsold completed residential units.

The majority of the unsold units in Manjung, Hilir Perak and Batang Padang are landed terraced houses while the ones in the Kinta district are mainly high-rise residential properties such as condominiums and apartments.

Sulaiman says this reflects differing demand patterns within the state. “Among the terraced units, 88% are located outside Kinta district, mainly in Manjung, Hilir Perak and Batang Padang. Meanwhile, Kinta accounts for more than 60% of the state’s condominium and apartment stock,” he adds.

He notes that while Kinta remains Perak’s main economic hub, demand growth in the outer districts does not always keep pace with the scale of new supply being delivered.

“In smaller towns and districts, the challenge is often more pronounced. These areas typically have smaller populations, slower household formation and lower income growth, which naturally limit the housing market’s absorption capacity. When new projects are launched in anticipation of future growth that materialises more slowly than expected, unsold units can accumulate. There is also the risk that buyers continue to favour more established areas because of familiarity and proximity to key commercial centres,” says Sulaiman.

Wong believes the situation in Manjung is likely due to a mismatch between supply and demand while the issue in Ipoh is more closely tied to local preference for landed homes over high-rise living.

Similar demand-supply mismatches may also be at play in the Hilir Perak and Batang Padang districts, where landed homes dominate the unsold stock despite generally being preferred by local buyers.

Commenting on the pricing, Wong points out that properties priced between RM200,001 and RM300,000, which form the bulk of the unsold stock, were launched to address affordable housing needs but not everyone can afford them.

“The root cause of unsold units for homes priced at this range is probably because of financial constraints, where ‘affordable’ pricing is no longer affordable to the targeted group due to limited household income as a result of the softer economy in general,” she says.

Sulaiman concurs, saying the issue is more complex than price alone. “Even when homes are priced below RM300,000, buyers must still meet lending requirements such as income thresholds, debt service ratios and credit assessments. For households with irregular income streams or existing financial commitments, securing a mortgage can remain challenging despite the relatively lower price point.”

He adds that some of these lower-priced units may also be located in peripheral areas with weaker transport connectivity, fewer job opportunities and limited amenities.

“In such cases, households may prefer renting or staying closer to urban job centres rather than purchasing a home in a less accessible location, even if the price is comparatively affordable.”

Meanwhile, Wong says some households are still recovering financially from the aftermath of the pandemic.

“As such, the build-up of unsold units in Perak is seen to result from the compounding effects of various factors over time,” she says.

Although condominiums and apartments are often associated with unsold stock, Sulaiman points out that Perak’s situation has increasingly shifted towards landed homes.

According to him, between 2020 and 2025, the composition of unsold completed units in the state reversed. In 2020, condominiums and apartments accounted for 56.3% of the total while landed homes made up 43.7%. By 2025, landed homes represented 77.5% of the total, with 1- and 2-storey terraced houses alone accounting for 61%.

According to Napic statistics, condominiums and apartments accounted for 47.1% (14,357 units) of Malaysia’s total unsold completed units nationwide. Terraced houses represented another 30.5% (9,293 units).

Both Wong and Sulaiman believe the focus should now be on improving the take-up of existing stock while ensuring future supply is better aligned with actual demand.

“From my standpoint, there are costs to be considered for all parties. Hence, future policy should emphasise stimulating the absorption of the current stock to stabilise both market demand and supply,” says Wong.

Sulaiman thinks addressing the issue will require both demand-side and supply-side measures.

“Stimulating demand through targeted financing programmes, first-home buyer incentives and rent-to-own schemes can help expand the pool of eligible buyers, particularly for lower-priced housing segments,” he says.

He notes, however, that such measures alone may not suffice if new supply continues to enter the market without being properly matched to local demand.

“A more sustainable approach may involve recalibrating supply through stronger planning coordination between the state government, local authorities and developers. Housing approvals should be supported by more detailed assessments of population growth, employment trends and existing stock levels before new projects are launched,” says Sulaiman, adding that closer collaboration could also help improve the distribution of housing types across the state.

“For example, planning frameworks could encourage a more balanced mix of landed and high-rise units while prioritising developments in locations with stronger economic activity and infrastructure connectivity. This would help ensure future supply is better aligned with the needs and absorption capacity of local markets.”

Sulaiman also believes the recent surge in unsold completed units after nine months on the market is not merely a short-term phenomenon.

“Cyclically, the property market is still adjusting after the disruptions of the pandemic and shifts in buyer sentiment. Structurally, however, the northern region faces longer-term constraints such as slower population growth, modest wage expansion and migration of younger workers to larger cities,” he says.

“Unless these structural factors change through stronger economic development or improved connectivity, housing demand may continue to grow at a more measured pace compared to Malaysia’s larger urban regions.”

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