3.0 Industrial Property

3.1 Property Overhang

The overhang situation for the industrial subsector continued to improve in the first half of 2024. A total of 746 overhang units, valued at RM0.78 billion, was recorded, reflecting a decrease of 7.7% in terms of quantity and 20.8% in terms of value compared to the previous half-year. A decrease of 8.9% was also observed during the same period in 2023, amounting to 819 units in the first half of 2023.

Sarawak holds the highest number of overhang of industrial properties, totalling 319 units (42.8%) valued at RM215.6 million, followed by Johor with 117 units valued at RM163.7 million.

Chart 46: Volume of Industrial Overhang H1 2021 – H1 2024

Chart 47: Value of Industrial Overhang H1 2021 – H1 2024

Chart 48: Industrial Overhang by State H1 2024

More than half of the terrace-type industrial units dominate the record of overhang, accounting for 60.5% (451 units). The majority of the overhang industrial units consist of those priced above RM1 million, which represents 36.9% (275 units).

Chart 49: Industrial Overhang by Type H1 2024

Chart 50: Industrial Overhang Units by Price Range H1 2024

3.2 Unsold Under Construction

The unsold under construction for industrial properties decreased in the first half of 2024. During this period, a total of 621 industrial units remained unsold, reflecting a 35.9% increase compared to the previous period. This figure also shows a significant rise of 56.4% when compared to the same period in 2023, which recorded 397 units in the first half of that year.

Chart 51: Trend of Unsold Under Construction Industrial Property H1 2021 – H1 2024

Selangor has recorded the highest percentage of unsold under construction at 34.3% (213 units), followed by Johor at 20.9% (130 units) and Negeri Sembilan at 19.5% (121 units).

Semi-detached and terraced units respectively account for 49.9% (310 units) and 34.3% (213 units) of the total unsold under construction.

Chart 52: Industrial Unsold Under Construction by State H1 2024

Chart 53: Industrial Unsold Under Construction by Type 2024

3.3 Unsold Not Constructed

No unsold not constructed units for industrial property recorded in the first half of 2024, compared to 112 units recorded in the first half of 2023.

Chart 54: Trend of Unsold Not Constructed Industrial Property H1 2021 – H1 2024