Written by Dave Platter, Global PR Director
Malaysia’s residential property market is entering 2026 with a rare combination of rising prices, tightening supply and improving buyer confidence, a contrast to conditions in many global markets.
According to Juwai IQI Co-Founder and Group CEO Kashif Ansari, 2025 was largely a year of absorption, as long-delayed projects finally reached completion.
Developers delivered 23.4% more new homes than in 2024, yet the market absorbed the additional supply smoothly.
Even the long-standing serviced apartment overhang declined by 11% year-on-year, signalling healthier underlying demand.
Looking ahead, new supply is easing. Construction starts have fallen 2%, while pre-construction pipelines are down nearly 18%, pointing to fewer launches in the years ahead.
This tightening is occurring just as demand fundamentals strengthen. Nearly half of Malaysia’s population is under 30 or aged between 30 and 44, prime life stages for household formation and home upgrading.
Price performance has also been resilient. Malaysia has not recorded an annual price decline since at least 2021, underscoring the market’s stability.
Johor Emerges as a Regional Standout
If 2025 was about clearing excess supply, 2026 is shaping up to be a more competitive market.
With fewer new projects in the pipeline, buyers targeting well-located homes along key infrastructure corridors may face tighter conditions and potential bidding pressure.
Johor stands out as a regional outperformer. Home purchases in the state rose 13% in the first half of the year, while prices increased 5.7% year-on-year.
Cross-border demand from Singapore continues to strengthen, including interest from Malaysians currently living there.
The upcoming RTS link is expected to further transform the market, and Juwai IQI estimates the new Special Economic Zone could add RM19.8 billion to Malaysia’s GDP over the next decade.
Price Growth Expected in 2026
Mr. Ansari forecastsnational price growth of 2–4% in 2026, supported by constrained supply, steady demand, and improving household incomes.
The primary downside risk would be an external shock severe enough to impact global employment and consumer confidence.
Absent such a disruption, 2026 is on track to be Malaysia’s strongest year for residential real estate since 2019.
