By Muhazrol Muhamad, GVP, Head of Bumiputra Segment

Malaysia’s property market reached a decade-high in 2024, recording over 420,000 transactions worth RM232.3 billion, with residential properties making up the majority. While Q1 2025 saw a slight cooldown—with transactions down 5.6% in volume and 12.9% in value—this appears more like a breather than a downturn. Johor led market activity, and new launches were concentrated in the RM300k–RM500k range. Landed homes continued to outperform high-rise units in sales. However, a sizable residential overhang persists, especially in high-rise and serviced apartments, particularly in Johor, Kuala Lumpur, and Selangor. 

Price trends reflect growing market polarization. While terraced and semi-detached homes saw modest price gains, high-rise units declined slightly. Demand is softening in the sub-RM500k segments, while the RM500k–RM1 million and above RM1 million categories showed resilience, indicating sustained buying power among higher-income groups. Despite a dip in new sales, residential development remains active, with a strong pipeline of completions and new starts. With lower financing costs and targeted incentives, Malaysia’s mid-market—particularly landed homes in well-located areas—offers promising potential for the rest of 2025.