Unsold and Overhang property. If these two are the same, then why use different terms…
Reason is… they are different
Unsold property as the name says means unsold property. If it’s launched and unsold, it’s unsold property. If it’s still in construction and not yet sold, this is also unsold property. If the construction is completed and the property is still unsold, it’s also known as unsold property. However, as per National Property Information Centre (Napic), unsold property will become an OVERHANG property if the following condition is met:
According to Malaysia’s National Property Information Centre (NAPIC), a property overhang is a completed residential unit that has received its Certificate of Completion and Compliance (CCC) but remains unsold for more than nine months after its launch date. Source: star property.my
Meanwhile unsold comprises of everything else including all these overhang units. Perhaps the next question would be whether the number of overhang properties is worsening. Well, it’s not. In fact it’s dropping but it has dropped to a level where we can see a key trend. We now know the price range of properties which are still in overhang. Somehow these remain unsold or people are not buying them somehow.
Article in edgeprop.my. According to the National Property Information Centre (Napic)’s report, 1Q2025 recorded 23,515 units of unsold completed homes. Compared to 24,208 units in 1Q2024 and 26,872 in 1Q2023, the numbers had actually tapered down, but the real story is where the overhang sat.
Instead of coming from the high-end segment, the bulk of overhang across key states in the recent months was made up of the mid-range, and even condo units which are considered within the affordable price brackets, i.e. between RM200,000 and RM600,000. Lots more details here: Article in edgeprop.my.
If we are a seller and we are not in financial difficulty…
No one can come to me and demand me to drop the price I intend to sell by telling me about the overhang. My response is a simple one. Since there are so many overhang properties out there, why are you coming to me and demanding that I drop the price I want to sell? Is it not better and far easier to go and search out all these unsold and overhang properties and force the current owners to sell you the properties instead? Perhaps they would give heavy discounts?
If we are a buyer and we are not easily swayed by some negative news…
If we have viewed a property and we did not like the property last year, chances are we will still not like the property this year. In other words, the overhang property should not form part of the consideration of buy or no buy. Stay focused on the reason to buy instead. Look objectively at the property which meets all the reasons to buy instead. If we could not see through this, then we will lose a lot of opportunities because during bad times, we did not buy and during good times, we are too scared to buy. Ermmm…
Happy reading and understanding. Do not simply buy!
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