The property market in Selangor has been bolstered by a lower overhang of residential units, which has contributed to a more positive market sentiment among buyers and investors.
Lower Residential Overhang Strengthens Selangor Property Market
The overhang of residential units in Selangor has been on a downward trend in recent years. According to data from the National Property Information Centre (NAPIC), the overhang of residential units in Selangor stood at 13,047 units as of the third quarter of 2022, which is significantly lower than the peak of 33,844 units recorded in the third quarter of 2019. The reduction in overhang has been attributed to a number of factors, including increased demand for properties, higher levels of completions, and government initiatives to reduce overhang.
Reduced Supply Buoys Market Sentiment
The lower overhang of residential units has had a positive impact on the property market in Selangor. Reduced supply has led to increased competition among buyers, which has resulted in higher property prices and shorter marketing periods. In addition, the lower overhang has also boosted market sentiment, as buyers and investors are more confident in the long-term prospects of the property market.
The lower overhang of residential units in Selangor is expected to continue to support the property market in the state. As the overhang continues to decline, it is likely that property prices will continue to rise and market sentiment will remain positive. This is good news for both buyers and investors who are looking to purchase property in Selangor.
