Malaysia’s property market is facing a tough reality, and Bumiputera homes are right at the heart of it.
Large Portion of Bumiputera Units Haven’t Found Buyers
According to the Real Estate and Housing Developers’ Association (Rehda), 77% of completed Bumiputera homes that remain unsold are priced between RM300,000 and RM500,000. What’s worse, 72% of them have been left unsold for more than three years, a sign that something is clearly off.
The President of Rehda Malaysia, Datuk Ir Ho Hon Sang, said that one of the main reasons for the high number of unsold property units is the high rejection rate of end-financing applications, coupled with slow market demand.
He explained that surveys showed the biggest challenges in securing housing loans are insufficient buyer income, incomplete financial documentation, and poor credit history.
“This situation affects overall sales performance, especially in the mid-range housing segment.” he said at a press conference.
He added that the large number of unsold homes not only affects developers, but also slows down the overall growth of Malaysia’s housing sector.
Fewer Launches, Lower Sales
Rehda’s Property Industry Survey for the second half of 2024 showed that out of 177 developers surveyed, only 66 launched new projects during that period. Another 58 had launched theirs earlier in the first half of the year.
But sales have dropped sharply. In the second half of 2024, developers sold only 3,802 units, a take-up rate of just 28%, compared to 47% in the first half. That’s a steep drop, and it shows how cautious buyers have become.
What’s Not Selling: A Closer Look
A deep dive into the unsold units reveals why developers are struggling to clear their stock:
1. RM400,000–RM500,000: 43% of unsold completed homes
This price range makes up the biggest portion of unsold homes. It’s long been marketed as “affordable” for middle-income families, but clearly, many Malaysians can’t afford homes at this price anymore. With living costs rising and wages not keeping up, this bracket has become too heavy for many young couples and first-time buyers.
2. RM500,001–RM600,000: 11% still unsold
These homes are usually larger or come with more facilities, but the monthly payments are steep. Even those earning a bit more are thinking twice before committing to long-term loans at this price.
3. Over RM1 million: 9% left sitting empty
Luxury homes continue to be the slowest to move. With fewer wealthy buyers in the market, and less interest from foreign investors, this segment has become overbuilt.
4. Below RM100,000: 6% remain unsold
Even at this ultra-low price, some homes still aren’t selling. Why? Most of these are in faraway or less developed areas where people don’t want to live. Low price doesn’t always mean high demand if the location or environment isn’t ideal.
Meanwhile properties priced between RM200,001 and RM300,000, RM100,001 and RM200,000, and RM600,001 to RM700,000 each represented 4 per cent.
RM13.95 Billion in Unsold Homes Nationwide
Data from the National Property Information Centre (Napic) confirms the worrying trend. As of 2024, there were 23,149 unsold residential units in Malaysia, worth a jaw-dropping RM13.95 billion. Once again, the majority of these units fell within the RM300,000–RM500,000 range.
According to the Valuation and Property Services Department (JPPH), high-rise homes continue to dominate the unsold property market, making up 61.2% or 13,455 units of the total unsold stock. Terraced houses come in second, with 5,187 units or 23.6%, while the remaining 3,326 units (15.1%) are made up of other property types.
In terms of property age, homes between five to ten years old make up the largest portion of unsold inventory, with 10,774 units still sitting on the market. This is followed by 5,498 units that are under three years old, and 4,726 units aged between three to five years.
What Needs to Change for Bumiputera Units?
The data sends one strong message: what developers are building isn’t matching what people can afford or want. Especially when it comes to Bumiputera homes, the focus needs to shift toward practical, well-located homes that truly meet the needs of average families.
It’s time for developers and policymakers to go beyond price tags and rethink what “affordable housing” really means. That includes better location planning, easier financing options, and more transparency in matching supply with real demand.
Until that happens, Bumiputera homes may remain vacant, while the people they’re meant to serve continue searching for homes they can actually live in.
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