Residential Property Overhang in Malaysia: Patterns, Causes, and Implications: A Systematic Literature Review Approach

Abstract

The Malaysian housing market has been plagued by the issue of residential property overhang, which has caused policymakers, developers, and urban planners to express worry. To find, compile, and evaluate the trends, root causes, and wider ramifications of residential property overhang in Malaysia, this study thoroughly examines the body of existing literature. The Scopus, Web of Science, and Google Scholar databases were used to compile relevant publications from 2000 to 2025 for a systematic literature review (SLR) that followed the PRISMA guidelines. According to this analysis, the residential property overhang in Malaysia is influenced by a few factors, such as disparities between the supply and demand for housing, speculative construction methods, affordability concerns, inefficient site selection, and regulatory restrictions. Additionally, this data highlights regional variations between states, where high-rise buildings and luxury developments are disproportionately affected. The paper outlines the socioeconomic consequences, such as urban inequality, slower market absorption rates, and a decline in investment confidence. Persistent structural disparities highlight the need for a more integrated strategy that connects market data analysis, housing policy reforms, and sustainable urban development, even in the face of many government endeavours to address this urgent issue. This study advances knowledge of this unregulated occurrence and makes recommendations for future research avenues for creating a conceptual framework that supports sensible planning and policy initiatives to stabilise the Malaysian residential real estate market.