KAJANG (Sept 10): Unsold affordable and mid-priced homes are making up an increasing share of Malaysia's growing property overhang, the government said.

There were 33,094 completed unsold residential units, valued at RM17.78 billion, in the first half of 2026 (1H2026), compared with the 30,471 unsold units worth RM17.73 billion for the whole of last year, Finance Minister II Datuk Seri Amir Hamzah Azizan said on Thursday.

Amir Hamzah added that the property overhang is also heavily impacting the commercial segment, particularly serviced apartments. 

The number of unsold completed serviced apartments rose to 23,375 with a total value of RM19.33 billion. Over 55% of these units are priced between RM500,001 and RM1 million.

“The data highlights a crucial point: we need strong data synergy. Project planning and construction can no longer rely solely on assumptions,” he said during the launch of the 1H2026 Property Market Report.

The minister urged property developers and local authorities to use the National Property Information Centre’s (NAPIC) big data system to accurately gauge  market demand in specific locations before launching new developments.

Overall, the national property market recorded 187,320 transactions worth RM105.12 billion 1H2026, a slight decline from the 196,232 transactions valued at RM107.68 billion a year ago, according to NAPIC data.

When asked about the property market's outlook for the second half of the year amid rising construction costs, Amir Hamzah said he remained optimistic pointing to robust macroeconomic fundamentals.

“Our national GDP (gross domestic product) remains strong. Based on current indicators, domestic spending is resilient, and the unemployment rate remains low. InsyaAllah (God-willing) this solid foundation will continue to support the property market moving forward,” he said.

He emphasised that the government is focused on tackling the rising cost of living and pushing for wage reforms to increase disposable income. 

“We want to put more money back into the hands of the people. If these efforts succeed, they will naturally bolster and support the domestic property sector.”

The residential subsector continued to be the primary driver of the national property market in 1H2026, making up 59.3% of the total transaction volume with 110,998 recorded transactions.

In terms of value, residential properties contributed the largest share at 44.8%, amounting to RM47.11 billion. 

This was followed by the commercial subsector, which recorded 21,454 transactions worth RM24.13 billion, and the industrial subsector with 3,932 transactions valued at RM14.78 billion.

Amir Hamzah reiterated the government’s commitment to fostering sustainable growth in the property sector while ensuring Malaysians have access to comfortable, affordable housing.

Key ongoing initiatives include a full stamp duty exemption for first-time homebuyers purchasing properties priced up to RM500,000 until the end of December 2027. 

Additionally, the government has strengthened the Housing Credit Guarantee Scheme with guarantees totaling up to RM20 billion, a move expected to benefit 80,000 homebuyers.