Malaysia has 32,800 finished homes with no buyers, worth a combined RM16.37 billion. According to Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu, 15,400 units or 46.9% of the total were homes priced at RM300,000 and below, while more than half are priced above that.

Affordable Homes Make Up Nearly Half The Unsold Total

The 15,400 unsold homes priced at RM300,000 and below are in the price range with the strongest demand from first-time buyers. Location, unit design, and loan rejections are the main reasons they remain empty. 

Some are far from public transport or major employment areas, which makes them hard to sell regardless of price. Others are the wrong size or layout for what buyers want. And even at RM250,000, you still need RM25,000 for a 10% down payment plus legal fees, stamp duty, and insurance before you can move in. 

Aiman Athirah said 76.3% of low-income households own their home, though the figure does not break down by age group. The government has already proposed stricter rules for developers to address this, including a requirement to sell at least 15% of completed units before new projects can be approved.

How The Government Says It Plans To Respond

Right now, a home priced at RM300,000 counts as “affordable” whether it is in rural Pahang or central Kuala Lumpur. The Housing and Local Government Ministry (KPKT) wants to change that. Using median household income data from the Department of Statistics Malaysia’s Household Income and Basic Amenities Survey 2024, KPKT has started mapping what “affordable” should mean in each state and district by comparing local house prices against local incomes. 

A new National Housing Policy is also being finalised, according to Aiman Athirah. She said the policy will focus on matching housing supply to demand, making it easier for buyers to get loans, and improving the national housing database.

Unsold Homes Can Give Buyers More Room To Negotiate

Building affordable homes has become more expensive. Material and labour costs keep rising, and developers either raise prices to stay profitable or stop building affordable units altogether. But if they raise prices, the homes end up out of reach for the buyers they were meant for. That is part of why so many finished units are sitting unsold, and if you are buying, that unsold stock can work in your favour.

If there are a lot of completed but unsold homes in the area you are looking at, you may have more room to negotiate. Developers who have been sitting on finished units for months may offer discounts, cover your legal fees, or throw in other incentives to close a sale.

That does not automatically make it a good deal. A large number of empty homes in one area can also mean the location has poor access to public transport, limited nearby amenities, or weak rental demand if you are buying as an investment. 

Check the area carefully before committing, and compare home loan rates from different banks to make sure you are getting a competitive rate on your loan. Even a small difference in your interest rate adds up to thousands of ringgit over a 25- or 30-year loan.

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