KUALA LUMPUR: Foreign investor interest is holding up for Malaysia’s high-end residential and commercial property assets despite the ringgit’s strengthening, as pricing and rental yields remain attractive, according to JLL Malaysia.
JLL Malaysia managing director Jamie Tan said Kuala Lumpur remains among Southeast Asia’s most affordable property markets which sustain foreign demand even as currency conditions become less favourable.
“We still have a lot of investors coming in, especially from Singapore and China. Malaysia is still one of the most affordable residential markets in Southeast Asia, if not the most affordable. Compared with cities such as Bangkok and Jakarta, Kuala Lumpur remains very affordable,” he said at JLL Malaysia’s Q1 2026 press conference today.
Tan said while a weaker ringgit typically attracts foreign buyers, the currency’s strength over the past year has had a more limited impact on sentiment compared with recent policy changes.
“The ringgit being stronger over the past few months does affect some investors coming into the market, but what moved the needle more was the increase in stamp duties from 4% to 8%. That had a bigger impact on the market than currency movements,” he added.
He said foreign investor interest remains resilient especially in growth corridors such as the Klang Valley and Johor.
“That’s what is attracting a lot of investors into areas like the Klang Valley and Johor, where there is still room to grow, especially in Johor,” Tan said.
“The perception is that there is still room to grow because Johor started from a very low base. Unlike Penang and Klang Valley, where growth started much earlier, Johor is still at an earlier stage of its growth cycle.”
Tan said Malaysia continues to appeal to foreign investors due to competitive pricing and relatively attractive rental yields.
“With that in mind, Malaysia remains very attractive to foreigners in terms of pricing and rental yield,” he added.
On the outlook for 2026, Tan said the segments that outperformed in 2025 are expected to continue leading the market in the coming year.
“The outperformers for 2025 will continue to outperform in 2026. We are talking about logistics, data centres, as well as residential properties in transit-oriented development locations,“ he said.
He added that real estate performance remains highly location-driven, with outcomes shaped by the specific market, demographics, accessibility and connectivity of each area.
“These are all the key factors that come into play when we think about how that particular segment will perform in the future,” Tan said.
Globally, chief growth officer Christophe Vicic said, the real estate outlook for 2026 is shaped by broadly improving fundamentals, including positive economic growth, moderating inflation, and lower interest rates.
“While challenges such as geopolitical tension and softer labour markets remain, six key forces are set to reshape the commercial real estate landscape,” he said.
He added a significant decline in new supply is expected across most property types in 2026, which will intensify supply shortages for premium space in high-demand locations.
“This will present an opportunity for property owners to retrofit and reposition existing assets to meet demand. Concurrently, a sharper focus on cost efficiency will become a top priority for Commercial Real Estate teams, as 72% of JLL experts anticipate higher input prices for energy, debt, labour, and materials.”
