The future is here!
Malaysia’s property market is gaining momentum for transformation, driven by economic dynamics, emerging technologies, and changing lifestyle preferences.
This dynamic combination is creating new opportunities while presenting distinct challenges in the residential, commercial, and industrial sectors.
As more foreigners join Malaysia’s My Second Home Programme (MM2H), the property sector must adapt to keep pace with global advancements.
Malaysia’s Property Trends to Watch
What’s Driving the Growth?
In December 2024, Juwai IQI forecasts that foreign investments in the residential sector will increase steadily, not exceeding 5% in the coming year.
Kashif Ansari, co-founder and group CEO, stated that foreigners holding Malaysian investment visas are likely to contribute at least RM166 million to the local economy in 2025.
He pointed out that the main buyer demographics are expected to remain unchanged, with Chinese investors still leading.
Kashif also emphasized Malaysia’s advantages in two key areas: a stable property market and attractive visa options for entrepreneurs, digital nomads, and wealthy retirees.
Additionally, Kashif is not the only expert expressing optimism about Malaysia’s property market. At the launch of CBRE, Savills Malaysia group managing director Datuk Paul Khong also shared his positive views.
He said, “The property market has seen notable transaction growth, especially in land, industrial, and commercial assets.”
Datuk Khong also added that key projects like the LRT3 (operational by Q3 2025), RTS Link (2027), and MRT3 (2027) are expected to create property hotspots.
“These developments will attract strong investor interest and improve connectivity,” Datuk Khong noted.
From government initiatives to the rise of sustainable living, these factors have shaped the dynamic landscape we see today.
Here are eight key property trends to watch in Malaysia in the year ahead.
1. Infrastructure Projects
Major infrastructure upgrades are laying the foundation for long-term growth.
The expansion of the Mass Rapid Transit 3 (MRT3) lines, the game-changing East Coast Rail Link (ECRL), and extensive highway improvements are enhancing connectivity across the country.
Not to mention the Pan-Borneo Highway also known as Pan-Borneo Expressway, is a controlled-access highway on Borneo Island.
It stretches around 2,000 kilometers, linking the Malaysian states of Sabah and Sarawak, as well as Brunei.
This has made the previously difficult journey much easier. The highway has also facilitated cross-border engagements, improving transport, trade, and tourism in the area.
It enables Bruneian investors to explore opportunities in Sabah and Sarawak property market and vice versa.
These projects aren’t just about smoother commutes—they’re unlocking the potential of previously underdeveloped areas, making them hot spots for property investment.
2. Economic Recovery
Malaysia’s strong post-pandemic recovery has injected fresh confidence into the market.
With GDP growth on an upward trajectory, more job opportunities, and a resilient domestic economy, people feel more secure about making big financial decisions—like buying property.
This economic rebound is a key driver behind the increasing demand for both residential and commercial spaces.
Government-backed initiatives like the Malaysia Digital Economy Blueprint are also boosting confidence in the real estate sector by promoting digital infrastructure and smart city developments.
3. Government Support
The Malaysian government is actively shaping the property landscape with supportive policies and incentives.
On October 18, 2024, the MADANI Government announced Malaysia’s ground breaking Budget 2025, titled “Ekonomi MADANI Negara Makmur, Rakyat Sejahtera.”
With a remarkable allocation of RM421 billion, this budget aims to reshape the future, especially in property and housing development.
This includes two new housing projects in Port Dickson and Seberang Perai Tengah.
By the end of 2025, 30 of these projects are expected to be finished, helping around 17,500 new residents.
The budget also sees an increase of RM90,000 to help build new homes for those in the hardcore poor housing program (PPRT), as well as for fishermen and residents of Chinese new villages.
But it doesn’t stop there. If you’re thinking about buying your first home, 2025 could be a great year for it!
The government’s Housing Credit Guarantee Scheme (SJKP) is now backing loans of up to RM500,000 for first-time buyers looking to purchase homes on wakaf land.
You can check the full requirement on Housing Credit Guarantee Scheme (SJKP) on their official website.
First-time home buyers can also get up to RM7,000 tax break when buying residential properties that cost up to RM500,000.
If you’re looking at properties priced between RM500,000 to RM750,000, you can claim a tax relief of up to RM5,000.
With programs for first-time homebuyers, tax incentives for property investors, and affordable housing schemes, Malaysia property market are on the stable track to stimulate growth.
4. Affordability and Green Living
Affordability remains the focal point.
Government-backed schemes like Rumah Mampu Milik (Affordable Housing Scheme) are helping first-time buyers.
Developers are focusing on compact, budget-friendly homes, especially in cities where land prices are high.
An if you are part of the B40 or M40 group, you will be happy to know that the government has created various housing schemes to help these groups.
To find out more about affordable housing programme provided by Malaysia government, click here.
On the flip side, eco-friendly buildings with green certifications are also crawling for demand.
The rebuilding of Forest City, Johor—where sustainability, business innovation, and technology meet at the crossroads of Malaysia and Singapore—will further breathe a new life into the country.
Designed to be a prime model for smart cities, the development integrates cutting-edge technology into every aspect of life, from energy-efficient buildings to advanced urban systems.
The focus on green living is evident in the abundance of vertical greenery and eco-friendly architecture that gives the city its “forest” feels.
Smart homes with energy-efficient tech and IoT features aren’t just trendy—they’re becoming the norm.
5. Urbanization
Cities like Kuala Lumpur, Penang, and Johor are expanding rapidly.
As more people move to urban centres seeking better job prospects, education, and lifestyle amenities, the demand for homes, offices, and mixed-use developments is soaring.
Penang appeals to tourists due to its balanced lifestyle pace.
The extension of the visa exemption for Malaysians traveling to China until end of this year benefits both Malaysians visiting China and attracts more Chinese tourists to Malaysia.
This urban growth is also pushing developers to create smarter, more sustainable living environments to meet the needs of modern city dwellers.
6. Industrial Property Boom
Malaysia is emerging as a key player in global supply chains, thanks to its strategic location in Southeast Asia.
The rapid growth of e-commerce, coupled with foreign direct investments, is driving an unprecedented demand for logistics hubs, warehouses, and industrial parks.
Adding to the point, Group CEO of real estate firm Juwai IQI, Kashif Ansari, shared his opinion, “With new president in the White House, the event will drive new growth in Chinese business investment in Malaysia and South-East Asia.”
This strongly suggests that Chinese investors are increasingly eyeing other Asian countries, particularly Malaysia, Thailand and Vietnam, especially in industrial real estate, manufacturing, and electronics sectors, as the country offers a strategic location and cost-effective infrastructure.
So, with Trump’s administration likely to maintain or intensify protectionist policies and tariffs targeting China, Malaysia stands to benefit indirectly.
This industrial boom is not just supporting the economy—it’s reshaping the property market, especially in regions like Johor and Penang, where industrial activities are thriving.
7. Industrial and Logistics
Thanks to e-commerce growth, supply chain shifts, and Malaysia’s prime location in Southeast Asia, there’s a surge in demand for warehouses, distribution centres, and last-mile delivery hubs.
Moreover, the Johor-Singapore Special Economic Zones (JS-SEZs) has geared up to attract foreign investors, especially in tech and manufacturing.
On January 7, 2025, Malaysia and Singapore took a transformative step forward with the official signing of a Memorandum of Understanding (MOU) to develop the Johor-Singapore Special Economic Zone (JS-SEZ).
This will drives up more demand for high-tech industrial parks.
Even before, we can see a daily influx of Singaporeans coming into Johor Bahru for various activities.
Now, with JS-SEZ come into focus, it’ll be easier and quicker to commute and do daily transaction between Johor and Singapore.
By narrowing the wage gap with Singapore, Johor is poised to become a competitive powerhouse for skilled professionals, attracting a younger, high-income demographic.
8. AI & Malaysia Property
A notable trend gaining attention worldwide, including in Malaysia for the future, is PropTech, which is transforming the real estate industry.
With features like virtual tours, online transactions, and AI-driven property management, technology is simplifying the processes of buying, selling, and managing properties.
Currently in Malaysia, smart cities are already on the rise.
Places like Kuala Lumpur and Johor Bahru are embracing smart grids, intelligent transport, and sustainable urban planning to attract investors and residents alike.
So, it’s no shocker that the property scene in Malaysia is shifting towards AI, tech, and everything digital to simplify things for investors, buyers, and agents.
Hotspots to Watch
In IQI Global’s 2024 Market Insight, three notable states are highlighted in the report. Kuala Lumpur, Johor Bahru, and Penang have all experienced impressive growth compared to other regions.
According to IQI data, these states have seen a substantial increase in total project sales, with a growth rate of 19%, translating to an additional 9,819 sales since 2023.
This increase reflects the robust demand for new properties in Malaysia, especially in major urban centers.
Read the full report of IQI Global 2024 Market Insight.
Here are the key regions heating up Malaysia’s property market in 2025.
- Klang Valley / Kuala Lumpur: The core of Malaysia’s economy will benefit from the new MRT3 and LRT3. These routes will create lively business areas that promote growth.
- Penang: A tech powerhouse with a strong industrial base. Investments in manufacturing and digital tech are driving property demand.
- Johor: Thanks to its close ties with Singapore and projects like Iskandar Malaysia, Johor is a magnet for both local and foreign investors.
Investment Outlook: Opportunities & Challenges
In conclusion, 2025 is packed with investment opportunities, especially in sectors like logistics, data centers, and eco-friendly developments.
But while there’s good, there’s also bad.
Think interest rate fluctuations, regulatory shifts, and global economic uncertainties. Although the property market appears promising for buying and investing, it’s prudent to develop a well-researched strategy before making any decisions.
Malaysia’s property market in 2025 is dynamic and full of potential. Growth is being driven by affordability, sustainability, tech innovation, and strategic investments.
Those who adapt to these trends will be perfectly positioned to thrive in this exciting landscape.
As Malaysia’s property market continues to evolve, now is the time to become home owner in Malaysia. Invest smartly by fill in the form below.
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