Malaysia Housing Market Shows Firmer Prices on Lower Volume

Malaysia’s housing market is entering mid-2026 with firmer prices, even as transaction activity slows.

According to NAPIC/JPPH’s Q1 2026 data, overall property transactions fell 8% year-on-year to 89,966, while transaction value slipped only 0.6% to RM51.09 billion. This suggests a more controlled market rather than a broad contraction.

Pricing remained positive. The Malaysian House Price Index rose 1.7% to 235.2 points, while the average home price increased to RM507,533, up from RM494,384 in Q3 2025.

By property type, terraced and semi-detached homes led growth at 2.2%, followed by high-rise units at 1.3%. Detached houses dipped 0.7%, showing that demand remains more selective across different segments.

The interest rate environment remains supportive, with Bank Negara Malaysia keeping the OPR at 2.75% in May 2026. Inflation also remained manageable, with headline inflation at 1.6% and core inflation at 2.1% in Q1 2026. 

Outlook

Malaysia’s property market is expected to remain selective in the second half of 2026.

The main challenge is still unsold supply. Residential overhang exceeded 32,000 completed units worth RM16.37 billion, while unsold serviced apartments reached 19,263 units worth RM16.52 billion.

New launches are also being moderated, with 9,112 residential units launched in Q1 2026 and a take-up rate of only 11.5%. This points to cautious buyer sentiment, especially as many buyers continue to face mortgage approval challenges.

Looking ahead, landed homes, transit-oriented locations and areas linked to the Johor JS-SEZ and RTS Link are likely to remain more resilient. Oversupplied high-rise and serviced-apartment pockets may continue to give buyers stronger negotiating power.