Unsold Completed Homes H1 2026: What It Means

On 10 September 2026 the Valuation and Property Services Department (JPPH) launched its Property Market Report for the first half of 2026 (H1 2026). Alongside it, the National Property Information Centre (NAPIC) published the Property Market Status Report H1 2026. One number was quoted everywhere: 33,094 homes that are finished but still unsold.

This article explains that number in plain language: what “unsold completed” means, which states and house types it is concentrated in, and, most importantly, what it means for you as a buyer.

General information only, not legal, financial or tax advice. Every figure comes from the NAPIC/JPPH publications listed under Sources and describes the period up to 30 June 2026.

Summary: the key H1 2026 figures

In short: home transactions eased slightly, developers launched fewer new projects, but the stock of completed homes that nobody bought went up. The Property Market Report H1 2026 itself says the rising trend since H2 2024 shows unsold completed units growing faster than the absorption rate (the rate at which buyers take those units up).

Three terms you need to understand

NAPIC counts unsold homes in three groups. All three count only units that have been formally launched and have remained unsold for more than nine months from the date the first sale and purchase agreement (SPA) was signed for the same project or phase. The SPA is the formal sale contract between the developer and the buyer.

What status does an unsold unit have?The groups NAPIC counts for units formally launched and still unsold beyond the defined period

• Unsold completed (overhang)Built and issued a Certificate of Completion and Compliance (CCC), launched, unsold
• Unsold under constructionBeing built, launched, unsold
• Unsold not constructedConstruction not started, launched, unsold

A few other terms:

• CCC (Certificate of Completion and Compliance) certifies that a building is complete and follows the approved plans. Without a CCC a home cannot lawfully be occupied.
• New launches are units formally marketed by a developer. NAPIC counts a launch only after the developer has the advertising and sales permit from the Ministry of Housing and Local Government (KPKT). A “soft launch” before the permit is not counted.
• Sales performance is the percentage of launched units that were sold in the review period.

One small point: the report’s foreword says “more than nine months after it was launched”, while the Technical Notes count from the date of the first SPA. We use the Technical Notes definition because it is more specific.

Unsold completed homes by state

Focus on Selangor

Selangor is the largest and most active market:

• 4,185 unsold completed units (12.6% of the national total), worth RM3.11 billion. Johor is slightly higher at 4,222 units, followed by Perak (4,075 units).
• 15,665 unsold units under construction, or 26.7% of the national total, the highest in Malaysia.
• 8,354 units launched in H1 2026, or 30% of national launches, with sales performance of 6.8%. By comparison, Johor launched 6,697 units with sales performance of 36.5%, and Pulau Pinang 2,878 units at 9.8%.
• The Property Market Report H1 2026 notes that every state recorded positive annual price growth in Q2 2026 except Selangor and Perak.

This means many units are on offer in Selangor at the same time, and new launches are selling slowly. That puts buyers in a position to ask questions, compare and check carefully before deciding.

House types and price ranges left unsold

Two things stand out. First, nearly half (48.6%) of unsold units have been on the market for 6 years or more. These are not homes that simply “haven’t sold yet”; many may not match what buyers need in location, size or price. Second, cheap homes are not immune: 37.3% of unsold units are priced at RM300,000 or below. A low price alone is not enough if the home is built in a place or a form buyers do not want.

One more signal from NAPIC’s H1 2026 Highlights: the sales performance of new launches was 22.8% for landed homes, against 8.2% for high-rise homes.

What it means for you as a buyer

1. You have room to ask and compare

When many units are on offer and sales are slow, a buyer can take time. Ask for every offer in writing, compare several projects, and check what the price includes (for example, SPA legal fees, which developers sometimes pay as a promotion). There is no assurance any developer will give a discount; it depends on the project and the developer.

2. Completed units have their own advantages and risks

3. The risk of sick and abandoned projects

The 58,611 unsold units under construction are a reminder that some projects run with weak sales. A project with weak sales may face cash-flow pressure. Before buying a home that is not finished, check the National Housing Department’s (KPKT) TEDUH portal, which among other things provides:

• Project progress status checks
• The list of licensed developers
• Checks on licences and permits issued
• The list of sick and abandoned projects
• Reporting of problem developers and projects

4. Know the protections in the standard SPA

For landed homes sold by a licensed developer, the SPA uses the standard Schedule G form under the Housing Development (Control and Licensing) Act 1966 [Act 118] (HDA). Protections in Schedule G include:

• The price is paid by construction stage (Third Schedule), starting with 10% on signing the SPA.
• 5% of the price is held by the developer’s solicitor as stakeholder after vacant possession (VP), released 2.5% after 8 months and 2.5% after 24 months.
• A defect liability period (DLP) of 24 months from VP. The developer must repair defects within 30 days of receiving written notice.

VP (vacant possession) is the date the keys are handed over and you can take the home. The DLP is the period during which the developer must repair defects at no cost to you.

How to check a developer and a project: step by step

1. Check the licence and permit Search the developer and project on TEDUH. Make sure the developer's licence and the advertising and sales permit exist and are valid.
2. Check project progress For an unfinished home, look up the project's progress on TEDUH and compare it with the promised schedule.
3. Check the problem-project list Look at the list of sick and abandoned projects. If the developer has other troubled projects, ask why.
4. Visit the site See the construction activity or the completed unit for yourself. A long-empty unit needs closer inspection.
5. Check your financing eligibility Know how much you can borrow before you sign anything. A cheap home is no use if the financing is not approved.
6. Read the SPA with your lawyer Make sure it is the standard HDA form and that you understand the payment schedule, VP date and DLP.

Why the “demand first” model matters

Unsold homes usually happen when homes are built first and buyers are looked for later. If the homes do not match what buyers want and can finance, units stay empty. As NAPIC’s data shows, almost half of unsold units have been on the market for more than six years.

RumahHQ Development Sdn Bhd works the other way round: a project launches only when qualified registrations reach at least 1.5 times the number of homes. Buyers register through Register Interest, which is non-binding, free and does not set aside any unit for you. LPPSA or bank financing eligibility is checked early.

Two examples: how many registrations are needed before a project launches, and how to read the Selangor figures

Example: why 1.5 times?

For 40 homes, at least 60 qualified registrations are needed (40 × 1.5). Because Register Interest is non-binding, not everyone who registers will buy. The margin helps make sure the homes built are homes that will be bought and financed, not additions to the "unsold completed" count.

Example: reading the Selangor numbers

In H1 2026 Selangor launched 8,354 units with sales performance of 6.8%. Roughly, that means about 7 in every 100 units launched were sold in the review period. For a buyer, it is a sign not to rush: compare several projects, check the status of each, and make sure your financing is clear first.

Common buyer mistakes

• Assuming an “overhang” means all prices will fall. NAPIC makes no price forecast. The MHPI still rose 0.9% a year nationally (preliminary Q2 2026). Conditions differ by state, type and project.
• Buying a completed unit without asking why it did not sell. A long-empty unit may have problems with location, access or physical condition.
• Not checking TEDUH before paying the developer anything.
• Comparing prices only, not the full cost. See our guide to the full cost of buying a new home.
• Signing an SPA before knowing your financing eligibility. Check first with our eligibility guide and eligibility calculator (estimate only).

Checklist before you buy

• Developer licence and advertising and sales permit checked on TEDUH
• Project progress checked (if unfinished)
• Project and developer not on the sick or abandoned project list
• Completed unit: inspected in person, including roof, walls, pipes and wiring
• Financing eligibility confirmed
• All offers and promotions received in writing
• The SPA is the standard HDA form (Schedule G for land and building)

Next step

If you want to buy a home built on real demand, register your interest. It is non-binding and free. Read also the difference between Register Interest and an SPA and how we report project progress openly on our Transparency page.

Register Interest