59% of Developers Report Unsold Completed Homes in Rehda Survey

PETALING JAYA, Sept 23 — Almost six in 10 Malaysian property developers surveyed by the Real Estate and Housing Developers’ Association Malaysia reported unsold completed residential units in the first half of 2026.

The Rehda Property Industry Survey 1H2026 found that 59% of respondents had completed homes that remained unsold as of June 30.

End-financing application rejections were the most frequently cited reason, followed by property prices and unreleased Bumiputera units.

The findings were presented during a media briefing on the “Rehda Property Industry Survey 1H2026 and Market Outlook for 2H2026 and 1H2027” at Wisma Rehda.

The survey, conducted by Rehda Institute between July and August 2026, gathered responses from 181 Rehda members across Peninsular Malaysia.

Financing and Affordability Remain Key Concerns

According to the survey, end-financing loan rejections accounted for 30% of the reasons given for unsold completed homes. High property prices represented 21%, while unreleased Bumiputera units accounted for 16%.

Developers said housing loan applications were mainly rejected because buyers did not meet income eligibility requirements, financial institutions offered lower financing margins or applicants had adverse credit histories.

The findings also highlighted the effects of rising operational and construction costs, limited financing access and broader economic uncertainty on development decisions.

Rehda president Datuk Zaini Yusoff said demand remained present, based on broadly consistent launch numbers and a modest improvement in sales.

However, he said developers continued to face pressure from higher costs, financing constraints and uncertainty in the wider economic environment.

Zaini added that housing affordability should not be assessed solely through property prices. Access to suitable end-financing and the cost of building and delivering homes should also form part of the affordability discussion.

Residential Launches Remain Broadly Stable

A total of 54 survey respondents launched projects during the first half of 2026, contributing 15,834 residential units to the market.

This was broadly unchanged from the 15,841 units launched in the second half of 2025, representing a difference of only seven units.

Properties priced between RM300,001 and RM500,000 accounted for 53% of new launches. These units were concentrated mainly in Perak, Pahang and Negeri Sembilan.

The survey also found that 33% of the reported unsold completed residential units were priced at RM1 million and above.

Sales Increase by 3.2% in First Half of 2026

Developers recorded sales of 5,260 units during the review period, up 3.2% from the 5,098 units sold in the second half of 2025.

The overall take-up rate increased marginally to 33.2%, compared with 32.2% in the preceding six-month period.

Apartments and condominiums recorded the highest sales volume at 3,032 units. Serviced residences followed with 1,114 units, while two- and three-storey terraced homes recorded 610 sales.

Despite the modest improvement, the survey indicates that access to home financing, affordability and development costs continue to influence Malaysia’s residential property market.