KUALA LUMPUR, June 28 — Unsold residential units including small office/home office (Soho) have risen to 34,532 units at RM22.26 billion, according to a report.

The figures were unveiled in the National Property Information Centre's Property Overhang Q1 2018 report, with local daily The Star's business pullout StarBiz stating that the total unsold residential units were 22,175 units in the same period last year.

The value of unsold housing units rose by 67.82 per cent year-on-year, up from RM13.27 billion the previous year, StarBiz said.

It reported that categories of residential units priced between RM300,000 and RM400,000 as well as those between RM500,000 and RM1 million each have a third unsold.

It noted that the three states of Kelantan, Kedah and Terengganu have the highest percentage of housing units yet to be sold, at 48.08 per cent, 48.20 per cent and 44.20 per cent, respectively.

Penang, Johor, Selangor and Kuala Lumpur have lower proportions of unsold residential units at 33.12 per cent, 29.12 per cent, 17.86 per cent and 13.53 per cent, respectively.

Property agency PPC International managing director Datuk Siders Sittampalam was reported saying the overhang did not mean a lack of demand for housing units, and cited affordability and accessibility issues as the more likely reasons for the unsold units that have been built.

“You can't say there is no demand, because there is latent demand. But one reason for the overhang is because prices of these units are just too high,” he was quoted saying by StarBiz, also saying that difficulties in securing financing to buy homes was also a factor.

He also said some properties are built in less-than-ideal locations, where it may be too far away or lack proper public transport.

Knight Frank Malaysia managing director Sarkunan Subramaniam said the level of unsold property in Malaysia was high but “alarming.”

“Alarming is when you see abandoned projects or developers going bust. So, the situation is not alarming — but affirmative action needs to be taken,” he was quoted saying by StarBiz.

He said the property overhang should reduce by next year due to greater confidence in the economy with the level of transparency shown by the Pakatan Harapan government, also hoping that the federal government would provide a clear direction with housing policies.

“Under the previous government, there was no clear direction in terms of housing policies, except for affordable housing. Developers did their best to make the sales happen,” he said.