Malaysia’s residential property overhang continued to increase in the first quarter of 2026 (Q1 2026), with the number of completed but unsold homes rising to 32,801 units, up from 23,515 units recorded in the same period last year, according to the latest Property Market Status Report released by the National Property Information Centre (NAPIC).

The completed unsold residential units were valued at approximately RM16.37 billion, reflecting the continued mismatch between housing supply and market demand across several states and price segments.

Among the states, Perak recorded the highest residential overhang with 4,063 units, followed by Johor (3,852), Selangor (3,745), Kuala Lumpur (3,733) and Penang (3,165).

Penang overhang increases by 16%

Penang recorded 3,165 completed unsold residential units in Q1 2026, representing a 16% increase from 2,729 units in the corresponding quarter of 2025. The state ranked fifth nationwide in terms of residential overhang.

The latest figures show that Penang’s overhang remains heavily concentrated in the high-rise segment. Condominiums and apartments accounted for 2,215 units, or nearly 70% of the state’s completed unsold homes, while the remaining inventory comprised landed residential properties and flats.

This suggests that the challenge in Penang is largely centred on the supply of stratified residential developments, where market absorption has been slower than anticipated.

Majority of overhang falls within the RM200,000 to RM400,000 range

A breakdown by price range reveals that Penang’s residential overhang is not dominated by luxury homes. Instead, the largest number of completed unsold units falls within the RM200,001 to RM300,000 price bracket, with 708 units, followed by the RM300,001 to RM400,000 segment, which recorded 412 units.

The figures indicate that while affordability remains a key concern for many homebuyers, the overhang is also influenced by a mismatch between the type of homes being supplied and actual market demand. This mirrors the national trend, where completed unsold homes are spread across multiple price categories rather than being confined to either affordable or premium housing.

Better alignment between supply and demand

While Penang continues to benefit from strong long-term growth drivers, including the Penang LRT Mutiara Line, Silicon Island and the expansion of Penang International Airport, the latest NAPIC data underscores the need for future residential developments to better align with market demand.

With nearly seven out of every 10 completed unsold homes being condominiums or apartments, developers may need to place greater emphasis on product mix, pricing and buyer preferences to improve market absorption. As new infrastructure projects and economic investments continue to strengthen the state’s appeal, a more demand-driven approach to future housing supply will be crucial in reducing Penang’s residential overhang over the coming years.

Homebuyers seeking spacious landed living in a strategic location may find a unique opportunity at Urban Rize, a new residential development by Jayamas Property Group in Sungai Dua, Butterworth.

Comprising only 39 units of 2-storey Super Link terrace homes, Urban Rize combines generous living spaces, heritage-inspired architecture, and modern conveniences within a thoughtfully planned neighbourhood.

Limited Collection of 39 Super Link Homes

Designed for modern family living, each home features a generous land size of approximately 18′ x 97′, offering significantly more outdoor and indoor space compared to many conventional terrace homes in the market.

The homes are thoughtfully planned with:

• 4 Bedrooms
• 3 Bathrooms
• Up to 4 Car Parks
• Spacious Living & Dining Areas
• Practical Family-Oriented Layout

Whether for growing families, multi-generational households, or homeowners seeking additional space for work and leisure, Urban Rize offers a comfortable and versatile living environment.

Heritage-Inspired Design with Modern Comfort

Inspired by Penang’s rich architectural heritage, Urban Rize incorporates timeless design elements that create a distinctive streetscape while maintaining contemporary functionality.

The result is a neighbourhood that offers both character and practicality, providing homeowners with a unique living experience that stands apart from typical residential developments.

The Mill @ Urban Rize – A Lifestyle Hub at Your Doorstep

Complementing the residential component is The Mill @ Urban Rize, a commercial precinct located within the same development corridor.
Designed as a convenient lifestyle destination, The Mill is planned to feature a variety of amenities and services, including:

• Drive-Thru Outlets
• Grocery & Daily Essentials
• Cafés & Restaurants
• Retail Shops
• Service-Oriented Businesses

Located within walking distance, The Mill enhances the overall convenience and liveability of the Urban Rize community.

Well-Connected Location in Sungai Dua

Strategically located in Sungai Dua, Butterworth, residents enjoy easy access to major highways, educational institutions, healthcare facilities, commercial centres, and key destinations throughout Mainland and Island Penang.

The area continues to experience steady growth, making it an increasingly attractive location for both homeowners and long-term property investors.

Show Unit Grand Opening

Members of the public are invited to experience Urban Rize during the official Show Unit Grand Opening.

Date: 11 & 12 July 2026 (Saturday & Sunday)
Time: 10:00am – 4:00pm
Venue: Urban Rize, Sungai Dua, Butterworth
(Waze: https://maps.app.goo.gl/Pm6rProVHejLp1qW9)

Visitors will have the opportunity to tour the show unit, explore the spacious Super Link layout, and discover how Urban Rize combines heritage-inspired living with everyday convenience.

Ideal Property Group has completed all infrastructure works at its 880-acre Penang Technology Park @ Bertam, with the development entering full delivery following the completion of its landmark entrance gateway.

The technology park is now development-ready, allowing investors to acquire land and commence construction and operations.

Chief Operating Officer Dato’ Goh Teng Whoo said Penang has developed into a high-technology manufacturing hub supported by a mature semiconductor supply chain, skilled talent pool and established industrial ecosystem, making it an attractive destination for
multinational investment.

He said the Penang state’s financing and capital market ecosystem continues to support corporate expansion.

“Investors can acquire freehold industrial land at Penang Technology Park @ Bertam, complemented by one-stop support services including plot advisory and regulatory coordination,” he said.

The park is equipped with four-lane dual carriageway, 100ft-wide internal roads, water supply, power supply infrastructure, 5G connectivity, natural gas pipelines and 24-hour CCTV surveillance.

Dato’ Goh thanked the Penang state government for its support in fast-track approvals, infrastructure delivery and investment promotion.

He said Penang Technology Park @ Bertam aims to provide a full industrial ecosystem, enabling businesses, particularly SMEs, to integrate into the global semiconductor supply chain.

The development comprises light and medium industrial lots, commercial components and built-to-lease facilities.

He said the group has received enquiries from companies in semiconductor, electrical and electronics (E&E), automative and parts, new energy, energy storage and other high-technology sectors.

Located in North Seberang Perai, the park is connected to the North-South Expressway and has direct access to Penang Port and the North Butterworth Container Terminal (NBCT), supporting logistics efficiency and supply chain integration.

More than 60% of industrial land has been taken up. The group expects the project to generate employment and support regional supply chain growth as operations commence.

A proposal has been put forward to officially designate Casa Permai Central Park, also known as Tanah Lapang Casa Permai, as a pet-friendly public park under the Penang Island City Council (MBPP). If approved, it would become the first officially recognised pet-friendly public park on Penang Island.

The proposal was submitted by MBPP councillor Lee Seng Hwai during a recent council meeting. According to Lee, the initiative aims to formally recognise the park’s long-established role as a gathering place for pet owners while introducing appropriate guidelines to promote responsible use and harmonious sharing of the public space.

Following the proposal, Lee visited the park together with MBPP’s landscape officers and representatives from the service centre of Tanjong Bunga assemblyman YB Zairil Khir Johari to conduct a site survey. The visit was intended to observe how the park is currently used, engage with visitors, and gather public feedback on the proposed designation.

Lee noted that Casa Permai Central Park has organically evolved into one of the island’s most popular destinations for pet owners. Every morning and evening, residents can be seen walking and exercising with their pets, while the park also attracts visitors from other parts of Penang who appreciate its spacious environment and pet-friendly atmosphere.

He emphasised that the proposal is not about introducing a new concept but rather recognising an existing community practice that has developed naturally over the years.

An official pet-friendly designation would provide a framework for responsible pet ownership, including encouraging pet owners to maintain cleanliness, observe proper etiquette, and ensure that both pet owners and other park users can enjoy the space safely and respectfully.

The move could also serve as a model for similar initiatives elsewhere on the island, balancing the growing demand for pet-friendly recreational spaces with the needs of the wider community.

Feedback collected during the site survey will form part of MBPP’s ongoing evaluation before any decision is made on the proposal. If implemented, the initiative would mark a significant step towards creating more inclusive public spaces that cater to the diverse lifestyles of Penang residents while promoting responsible community stewardship.

Casa Permai Central Park:

A proposed 42-storey commercial development on a 1.2-acre site along Jalan SP Chelliah in George Town, adjacent to The Rise affordable housing scheme and about 1km from KOMTAR. The site is also within walking distance of Penang Times Square, placing it within one of the city’s established urban districts.

The development will comprise an 11-storey podium containing 21 shop and office units on the lower two floors, together with hotel facilities, while nine levels will be allocated for parking. Above the podium, Tower A will house a 30-storey serviced residence component with 292 units and two levels of resident facilities. Tower B will accommodate a hotel component with 351 rooms spread across 14 floors, complemented by two levels of hotel facilities.

The project is still pending approval, and further details will be made available upon its official launch.

Project Name: (to be confirmed)
Location : George Town
Property Type : Commercial
Land Area: 1.2 acres
Total Units : 292 (serviced residence)
Built-up Size: (to be confirmed)
Land Tenure : (to be confirmed)
Indicative Price : (to be confirmed)
Developer : (Follow us to find out more)

DISCLAIMER: This article is solely based on research done using publicly available data at the time of publication. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.