Addressing Environmental Perceptions in Condominium Overhang: A Multiple-Case Study

Property overhang refers to unsold housing units that remain in the market for extended periods (9 months from the launch date), often posing a persistent challenge despite a decline in recent numbers. Several factors contribute to property overhang, including price, location, external environmental influences, etc. This paper examines the external environmental factors surrounding selected condominiums, which exert both positive and negative impacts on associated unsold properties. Four housing schemes were analyzed: one in Johor and three in the Klang Valley. These locations were chosen based on (1) their status as areas with the highest property overhang, particularly Johor and Klang Valley; (2) the predominance of condominium overhang; (3) a price range between RM500,000 and RM1,000,000; and (4) an overhang rate exceeding 50% of unsold units. The study employs a triangulation method utilizing document analysis, literature reviews, and field observations to evaluate the impact of external environments on these properties. The findings identify 13 external environmental factors influencing the overhang. The shared issues across the housing schemes, including traffic congestion, poor road design, illegal parking, and proximity to village areas and social housing, contribute to negative perceptions and reduce marketability, which could be addressed through improved infrastructure, community integration, and urban design. The results suggest that developers and local authorities should consider these external environmental factors during the planning and development of new housing schemes to reduce the prevalence of property overhangs in the future.