DEVELOPING A LITERATURE-BASED CONCEPTUAL FRAMEWORK FOR RESIDENTIAL PROPERTY OVERHANG IN MALAYSIA
DOI:
https://doi.org/10.35631/IJLGC.1143026Keywords:
Residential Property Overhang, Housing Affordability, Market Dynamics, Governance and PolicyAbstract
Residential property overhang has become a persistent concern in Malaysia, signalling a long-standing imbalance between what the market supplies and what households are truly able to afford. Despite various initiatives, such as the Home Ownership Campaign and affordable housing programmes, the issue continues to burden developers, financial institutions, and urban communities. This study seeks to make sense of this complex situation by developing a literature-based conceptual framework that brings together the main factors contributing to the overhang. A systematic review of studies, government reports, and market assessments published between 2000 and 2025 highlights four major drivers: market dynamics such as oversupply and pricing misalignment; socioeconomic pressures, including income stagnation and limited affordability; developer behaviour influenced by speculative and investment-driven projects; and governance gaps relating to fragmented planning and regulatory inconsistencies. These factors interact through mediating elements such as buyer preferences, market absorption patterns, and policy effectiveness, resulting in financial, social, and spatial consequences. The proposed framework integrates structural, behavioural, and policy-related dimensions, offering a clearer understanding of how the problem persists across different market segments. By consolidating these insights, the study provides a foundation for future empirical research and supports the development of more strategic, evidence-based interventions to promote a balanced, affordable, and sustainable housing market in Malaysia.
Downloads
References
Cheng, C. T., & Ling, G. H. T. (2024). Examining key macroeconomic determinants of serviced apartments price index in Kuala Lumpur. IJHMA, 17(3)Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). Sage Publications.
Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approaches (3rd ed.). SAGE Publications.Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4. https://doi.org/10.11648/j.ajtas.20160501.11
DiPasquale D, Wheaton WC (1996) Urban economics and real estate markets. Prentice Hall, Englewood CliffsHair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications.
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American journal of theoretical and applied statistics, 5(1), 1-4.Lee, C., Tan, K., & Lim, H. (2023). Urbanization and speculative development: Trends in Malaysia’s residential market. Asian Real Estate Journal, 14(1), 33–50. https://doi.org/10.1108/AREJ-01-2023-0005
Hair, J. F., & Alamer, A. (2022). Partial least squares structural equation modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027.https://doi.org/10.1016/j.rmal.2022.100027
Henseler, J., Schuberth, F., Lee, N., & Kemény, I. (2025). Why researchers should be cautious about using PLS-SEM. Industrial marketing management.O’Sullivan, A. (2018). Urban Economics (9th ed.). McGraw-Hill Education.
Ishak, N. F. A., Ahmad, Z., Ting, K. H., & Marzuki, J. (2024). A thematic review on factors influencing property overhang in residential properties in Malaysia. Asian Journal of Environment-Behaviour Studies, 9(27), 1–14. https://doi.org/10.21834/aje-bs.v9i27.440 [A+1.1+Noor...k++pp.1-14 | PDF]
Mills, E. S. (1967). An aggregative model of resource allocation in a metropolitan area. The American Economic Review, 57(2), 197–210.
National Property Information Centre (NAPIC). (2024). Property market report: Malaysia 2000-2024. Ministry of Housing and Local Government, Malaysia.
O'Sullivan, A. (2018). Urban Economics (9th ed.). McGraw-Hill Education.
Rahman, M., & Zainuddin, R. (2023). Developer behavior and its impact on residential overhang in Malaysia. Property Management Journal, 41(3), 275–293. https://doi.org/10.1108/PMJ-03-2023-0021
Ramli, F., Zainal, R., & Ali, M. (2020). Oversupply of the high-cost housing in Malaysia: factors influence the developer’s decision in supplying more high-cost housing. Malaysian Journal of Sustainable Environment (MySE), 7(2), 95-110
Ishak, N. F. A., Ahmad, Z., & Ting, K. H. (2025). Property stigma factor in residential overhang: Real estate players’ perspectives. Journal of Construction in Developing Countries, 30(S1), 181–203. https://doi.org/10.21315/jcdc.2025.30.s1.9
Hui, H. C. (2024). De-mystifying the housing overhang problem in Malaysia. Pacific Rim Real Estate Society (PRRES) Journal, 29(1), 57–83.https://www.prres.org/volume29-2024/de-mystifying-the-housing-overhang-problem-in-malaysia
Huri, N., Ahmad @ Baharum, Z., Ting, K. H., Adnan, Y. M., & Ishak, N. F. A. (2024). A conceptual paper on stigmatised dimension towards residential overhang. Planning Malaysia: Journal of the Malaysian Institute of Planners, 22(3), 379–393.
