SECULAR TRENDS IN PROPERTY OVERHANG IN MALAYSIAN RESIDENTIAL AND SERVICED APARTMENTS

Authors

  • Noor Farhana Akrisha Ishak College of Built Environment, UNIVERSITI TEKNOLOGI MARA, MALAYSIA
  • Zarita Ahmad@Baharum College of Built Environment, UNIVERSITI TEKNOLOGI MARA, MALAYSIA
  • Ting Kien Hwa Faculty of Built Environment, TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, MALAYSIA
  • Yasmin Mohd Adnan Faculty of Built Environment, UNIVERSITI MALAYA, MALAYSIA
  • Norulelin Huri College of Built Environment, UNIVERSITI TEKNOLOGI MARA, MALAYSIA

DOI:

https://doi.org/10.21837/pm.v22i32.1515

Keywords:

Secular trends, Property Overhang, Residential, Serviced Apartment, Malaysia

Abstract

In 2022, property overhang residential and serviced apartments recorded 51, 724 units valued at RM38.6 billion. Property overhang occurred when the excessive supply of property stocks in 2017 caused a drastic increase of overhangs, which is 31,102 units then carried forward to 2018, continuing to rise in the housing market. This scenario cannot be taken lightly by the government. Hence, this study aims to explore the secular trend in property overhang in Malaysian residential and serviced apartments over the past ten years. Data property overhang in the years 2013 to 2022 was obtained from the National Property Information Centre (NAPIC). The data property overhang will be analysed using time series analysis based on (1) state, (2) type of property, and (3) price range. Then, this study reveals that the top three (3) overhang residential and serviced apartment properties are in Johor (19,390 units), Federal Territory Kuala Lumpur (9,441 units), and Selangor (6,624 units). Condominiums/Apartments and serviced apartments are the highest type of overhang properties with a price range of RM500,001 – RM1,000,000. Thus, this study provides insight into the market performance of overhang residential and serviced apartment properties in Malaysia. This data will be used to examine the factors that influence the overhang of these properties.

Downloads

Download data is not yet available.

References

Ab Rahim, N., Adzhar, S. M., Basrah, N., Ab Majid, R., & Mustafar, S. (2019, November). Factors lead to overhang in affordable housing: A content analysis in qualitative approach. In IOP Conference Series: Earth and Environmental Science (Vol. 385, No. 1, p. 012073). IOP Publishing. DOI: https://doi.org/10.1088/1755-1315/385/1/012073

Adzhar, S. M., Rahim, N. A., Basrah, N., Majid, R. A., & Mustafar, S. (2021, November). Overview on built environment planning: Residential overhang factors in Malaysia affordable housing. In IOP Conference Series: Earth and Environmental Science (Vol. 881, No. 1, p. 012018). IOP Publishing. DOI: https://doi.org/10.1088/1755-1315/881/1/012018

Alom, S. (2020). An Empirical Exploration of Demand and Supply in Malaysia Housing Market. South Asian Journal of Social Sciences and Humanities, 1(1), 123-135.

Bernama. (2023, October 20). Demystifying the issues behind Malaysia's overhang, unsold residential properties. New Straits Times. Retrieved from https://www.nst.com.my/property/2023/10/969373/demystifying-issues-behind-malaysias-overhang-unsold-residential-properties

Chee Yin, Y., Yong Hui Nee, A., & Senadjki, A. (2019). The Nexus Between Housing Glut, Economic Growth, Housing Affordability and House Price in Malaysia. Planning Malaysia, 17(9). https://doi.org/10.21837/pm.v17i9.604 DOI: https://doi.org/10.21837/pmjournal.v17.i9.604

Cheng, C. T., & Ling, G. H. T. (2023). Examining key macroeconomic determinants of serviced apartments price index: the case of Kuala Lumpur, Malaysia. International Journal of Housing Markets and Analysis, (ahead-of-print). DOI: https://doi.org/10.1108/IJHMA-10-2022-0162

Craighead, G. (2009). Residential and Apartment Buildings. High-Rise Security and Fire Life Safety. 551–81. doi: 10.1016/B978-1-85617-555-5.00011-0. DOI: https://doi.org/10.1016/B978-1-85617-555-5.00011-0

Desmond, M., & Shollenberger, T. (2015). Forced displacement from rental housing: Prevalence and neighborhood consequences. Demography, 52(5), 1751-1772. DOI: https://doi.org/10.1007/s13524-015-0419-9

Hung, F. C. (2020, January 23). What caused Malaysia’s residential property overhang and when will it get better? iProperty. Retrieved from https://www.iproperty.com.my/news/residential-property-overhang-malaysia-42611

IVSC. (2003). General valuation concepts and principles. International Valuation Standards Committee.

Jabatan Perancangan Bandar dan Desa Semenanjung Malaysia 2016 Manual Garis Panduan dan Piawaian Perancangan Negeri Selangor. Kuala Lumpur: Jabatan Perancang Bandar dan Desa Semenanjung Malaysia

Marzukhi, M. A., Leh, O. L. H., Abdullah, Y. A., Khalid, N. S., Zainol, H., & Apet, R. A. (2019, November). Comparison of development control process for serviced apartment (commercial) and residential apartments. Case Study: Shah Alam City Council. In IOP Conference Series: Earth and Environmental Science (Vol. 385, No. 1, p. 012011). IOP Publishing. DOI: https://doi.org/10.1088/1755-1315/385/1/012011

Mohd Daud, M. A., Rosly, S. A., & Muhamad Sori, Z. (2022). Understanding Issues Of Affordable Housing In Malaysia To Attract Investment. Planning Malaysia, 20(20). https://doi.org/10.21837/pm.v20i20.1074 DOI: https://doi.org/10.21837/pm.v20i20.1074

National Property Information Centre (NAPIC). Property Market Report. Retrieved from https://napic2.jpph.gov.my/ms

National Property Information Centre (NAPIC). Property Market Snapshots. Retrieved from https://napic2.jpph.gov.my/ms

Ng, S. (2019, February 1). What shall we do with the property overhang? EdgeProp. https://www.edgeprop.my/ content/1638530/what-shall-we-do-property-overhang

S Birruntha. (2023, February 6). Residential property overhang easing, but concerns remain. The Malaysian Reserve. Retrieved from https://themalaysianreserve.com/2023/02/06/residential-property-overhang-easing-but-concerns-remain/

Secular Trend. (2008). In: The Concise Encyclopedia of Statistics. Springer, New York, NY. https://doi.org/10.1007/978-0-387-32833-1_367 DOI: https://doi.org/10.1007/978-0-387-32833-1_367

Suraya Ismail and Gregory Ho Wai Son (2021). Fixing a broken housing market – A call for a ‘BACK TO BASICS’ approach. Khazanah Research Institute. License: Creative Commons Attribution CC BY 3.0.

Truong Hong Trinh (2022) Theoretical foundations of Property market behavior, Cogent Business & Management, 9:1, DOI: 10.1080/23311975.2022.2132590 DOI: https://doi.org/10.1080/23311975.2022.2132590

Yee, A. F. (2023). The REAL deal: Give timely granular analysis on property overhang. The Edge Malaysia. Retrieved from https://theedgemalaysia.com/node/669968

Downloads

Published

2024-07-29

How to Cite

Ishak, N. F. A., Ahmad@Baharum, Z., Hwa, T. K., Mohd Adnan, Y., & Huri, N. (2024). SECULAR TRENDS IN PROPERTY OVERHANG IN MALAYSIAN RESIDENTIAL AND SERVICED APARTMENTS. PLANNING MALAYSIA, 22(32). https://doi.org/10.21837/pm.v22i32.1515

Issue

Vol. 22 (2024): PLANNING MALAYSIA JOURNAL : Volume 22, Issue 3, 2024

Section

Article

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 Unported License.

Copyright & Creative Commons Licence

eISSN: 0128-0945 © Year. The Authors. Published for Malaysia Institute of Planners. This is an open-access article under the CC BY-NC-ND license.

The authors hold the copyright without restrictions and also retain publishing rights without restrictions.

Most read articles by the same author(s)