By Poovenraj Kanagaraj
In a media statement release by the Valuation and Property Services Department Malaysia (JPPH), service apartment overhang in the nation continued to see increase in 2019 and this led to becoming a bulk of the property overhang.
A total of 17,412 overhang units with a value of RM 15.04 billion were identified recording nearly 51 percent in volume and 65 percent in value against 2018.
The unsold under construction and not constructed segment improved with a decline in volume to 33,827 units and 7,659 units, down by 9.3 percent and 40.5 percent respectively.
By state, Johor which had already retain the highest number and value of overhang in the country, recorded the highest serviced apartment overhang with 71.2 percent share in volume, amounting to 12,207 units and 76.9 share in value worth RM 11.56 million.
Majority of the overhang units is in the Johor Bahru district accounting for 99.2 percent of the state’s overhang (12,105 units worth RM 11.5 billion). The state also held 34 percent share (11,490 units) of the country’s unsold under construction.
By price, units above RM1 million formed 37.4 percent of the total overhang, 20.3 percent of the total unsold under construction and 19.5 percent of the total unsold not constructed. For unsold not constructed, units in the price range of RM300,000 to RM400,000 formed 33.0 percent of the total.