Thinking of overhang properties? 85 percent of serviced apartment overhang are 5 years or more!

Thinking of overhang properties? 85 percent of serviced apartment overhang are 5 years or more!

Serviced Apartment, where are all these units?

It’s predominantly in three states. Largest number would be Johor with close to 10,000 units (Yes, you definitely have heard of them), followed by WP Kuala Lumpur with 4,112 units and then Selangor with 2,561 units. These three markets would total 16,180 units and this is 89 percent of all service apartments categorized as overhang. In other words, if these three states clear their serviced apartment old stocks, then we have no more overhang or very little of them. Speaking of serviced apartment old stocks, how old are they?

Serviced Apartments overhang are majority old units

Highest number would be 5-10 years with 72 percent of all units or 13,147 units. This is followed by properties which are more than 10 years and this is 13.4 percent of the total with 2,437 units. Next would be between 3-5 years old and this is 9.6 percent with a total of 1,755 units. The lowest number is actually the properties which are below 3 years. This is 5 percent of total or a total of just 907 units. In other words, if these serviced apartments are priced right, designed right and built at the right places, it would take a very small effort to finish selling them. Surely many people are good if they could find a good priced serviced apartment in areas they love.

Please take a look at the latest Property Market Qa 2025 Snapshot by NAPIC below:

Decisions based on overhang numbers are not clever at all

Stay very focused on buying the right properties. There is no need to think about the current overhang of serviced apartments because we can see clearly that people did not like them because it was not at the right price, they hated the design or they hated the area it was built. Somehow there are things which they did not like and that’s the reason why the overhang happen. This does NOT impact any other properties which are attractively priced, attractively design and built at a popular neighborhood.

Hoping for a lower price simply because of overhang?

This is why we can keep talking about overhang and hoping for a lower price but the serviced apartments at the right place will not be decreasing in price. Of course if we go to these old stocks which is still owned by developer, we have a great bargaining power. Just ask for the discount which we like and who knows, we could get it. Else, it’s okay too, move on and choose some other properties because there are so many of them still in the secondary market. It does not need to be serviced apartments and definitely not the older ones unless some of the circumstances which made them go into overhang were removed.

The right action? Knowing what to choose, knowing price to enter and knowing how to get people to pay us rental which could cover the mortgage and at the end of the day, we own the property and they keep renting a property. Mortgage has a period when it will finish, regardless of how much interest payment we paid. Renting is meanwhile forever, no matter how cheap or low we kept telling people about; renting better than buying. Happy taking the right action and with the right mentality too.

Happy contributing and earning. 

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