Perak Leads Malaysia Overhang While Penang Condos Show The Affordable Supply Mismatch

Malaysia's latest overhang data point to a local supply problem rather than a simple affordability shortage, with Perak leading completed unsold stock while Penang's unsold homes are heavily high-rise.

Perak Is The Largest Overhang Market

Recent NAPIC-linked analysis showed Perak at the top of the completed-unsold ranking, ahead of Johor and Selangor in earlier full-year data and still prominent in first-quarter 2026 market-status tables. That puts secondary-state absorption under closer scrutiny than national averages suggest.

Penang's Problem Is Vertical

Penang recorded 3,165 completed unsold residential units in Q1 2026, up 16 percent from a year earlier. Condominiums and apartments accounted for roughly 2,215 units, close to 70 percent of the state's overhang, showing that stratified supply is not automatically matching household demand.

Affordable Labels Do Not Clear Stock

A large share of Malaysia's overhang sits in lower price bands, including units at RM300,000 and below. If income, location, unit size, financing and transport access do not work for buyers, an affordable price label will not clear completed homes.

What Buyers Should Watch

A completed unsold unit can be an opportunity only when the discount compensates for location, unit size, maintenance fees and weak absorption. Buyers should ask how long each project has remained unsold.

Outlook

Malaysia's next signal is whether developers trim launches or change product mix in Perak, Johor and Penang. Buyers should compare completed-stock discounts before paying infrastructure premiums.

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