KUALA LUMPUR: Malaysia’s property market registered moderate growth momentum in 2025 as it continued to navigate global economic uncertainties with resilience.
According to the Valuation and Property Services Department’s (JPPH) property market report for the first half of 2025 (H1’25), Malaysia’s property market softened in the first six months of the year as transaction volume fell, while housing developers withheld launches amid modest sales and a rising overhang situation.
Volume slipped 1.3% to 196,232 transactions in H1’25 compared with the same period in 2024. Transaction value, meanwhile, rose 1.9% year-on-year to RM107.68 billion.
As for the third quarter of the year, JPPH said transaction value expanded despite a contraction in transaction volume, underscoring the sector’s cautious but steady performance.
This was supported by the government’s measures under the Madani Economy framework and Budget 2025.
“That includes tax relief on loan interest and the Step-Up Financing Scheme under the Housing Credit Guarantee Scheme, which provided crucial stimulus for homeownership, particularly among first-time buyers,” it said.
The property market recorded a 12.5% rise in transaction value to RM64.39 billion, reflecting stronger demand in higher-value segments, while transaction volume fell 3.5% to 108,250 properties in Q3 2025.
The Malaysian House Price Index stood at 229.1 points, with an average price of RM494,384 per unit, representing a marginal annual growth of 0.1%.
New residential launches fell to 11,533 units, with a modest sales performance of 14%.
Despite market growth, unsold completed residential properties rose to 28,672 units valued at RM17.25 billion, while unsold serviced apartments reached 17,892 units worth RM14.48 billion.
“As for construction activities, development completions showed positive growth, but new starts and planned supply declined, signalling cautious sentiment among developers,” said JPPH.
As for the commercial segment, shopping complexes recorded an occupancy rate of 78.6%, up from 77.6% in 2024, while purpose-built offices remained stable at 71.9%.
In light of these initiatives and announcements, the Real Estate and Housing Developers’ Association Malaysia (Rehda) expects stable, sustainable growth for the Malaysian property industry in 2026, with a landscape that supports genuine demand while reducing and effectively eliminating speculative activity.
“In addition, Johor is poised to benefit from heightened connectivity via the Johor Bahru–Singapore Rapid Transit System, the Johor–Singapore Special Economic Zone and the elevated Autonomous Rapid Transit.
“Penang will see transit-oriented growth with the Light Rail Transit Laluan Mutiara and Juru-Sungai Dua Elevated Highway, while nationwide projects like the East Coast Rail Link and Mass Rapid Transit 3 re expected to catalyse demand,” said Rehda.
It added that key policy reforms, such as Madani Housing Reforms in January 2026, including the new Real Property Development Act, aim to strengthen governance.
On the 2026 outlook, Rehda said it remains cautiously optimistic about the property industry, although the year may introduce uncertainties for developers.
For instance, it said stamp duty for foreign residential ownership will rise from four per cent to eight per cent, potentially cooling speculative demand.
“Rehda foresees stronger emphasis on environmental, social and governance compliance and sustainable development, alongside urban renewal initiatives such as redevelopment of housing over 50 years old, particularly in Selangor,” it said.
Meanwhile, JPPH said the property market is expected to stay positive, with cautious optimism as industry players anticipate genuine demand to drive growth while speculative activity is curbed.
“With Visit Malaysia Year 2026 and enhancements to the Malaysia My Second Home Programme, demand for premium residential properties and serviced apartments in key cities is also projected to rise,” it said.
Besides, government support remains crucial, particularly with the affordable housing push under which the government targets the construction of one million affordable homes between 2026 and 2035 through programmes such as Residensi Rakyat, Residensi Madani, Rumah Mesra Rakyat and PR1MA, it added.
In September, Finance Minister II Datuk Seri Amir Hamzah Azizan expressed optimism that the country’s real estate sector would extend its recovery momentum and continue to absorb global economic challenges through continued government support. – Bernama
