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KUALA LUMPUR: Unsold residential properties continue to pile up across Malaysia as financing difficulties and cautious buyers weigh on the property market, a survey by the Real Estate and Housing Developers’ Association (Rehda) found.

Rehda president Ho Hon Sang said 60 per cent of developers reported unsold completed units as of Dec 31, 2025, with loan rejections, high prices and weak demand cited as the main causes.

“In the RM500,000 to RM700,000 range, most respondents reported loan rejection rates of between 31 and 45 per cent,” he said when presenting the survey findings.

Two- to three-storey terrace houses made up the largest share of unsold homes at 26 per cent, followed by serviced residences (19 per cent) and single-storey terrace houses (18 per cent).

The survey also found 17,971 residential units were launched in the second half of 2025, but sales slowed with the take-up rate dropping to 21 per cent, compared with 38 per cent in the first half of the year.

Developers are now launching projects in smaller phases and delaying some developments amid weaker demand, though the industry remains cautiously optimistic about the market outlook for 2026.