This article is contributed by Irhamy Ahmad MRICS, Founder & Managing Director of Irhamy Valuers International
In Malaysia, three-story shops are a prominent part of the commercial real estate landscape, serving as flexible business solutions in both urban and suburban areas. These buildings typically offer three levels, each adaptable for various types of tenants and purposes. A comparison of three-storey shop transactions between 2020 and 2024 reveals notable trends and price changes in Malaysia’s real estate market.
These properties have undergone significant shifts from 2020 to 2024, shaped by the economic impact of the COVID-19 pandemic, changing consumer behavior, and new commercial trends. Central to Malaysia’s retail and business landscape, three-storey shops have seen transformations in transaction volume, pricing, tenant mix, usage, and investment appeal.
The pandemic had a profound impact on pricing in 2020, particularly in urban centers where businesses were
struggling to survive amid lower foot traffic and lockdown restrictions. Property prices in secondary locations also dropped, as investors were hesitant to commit amid economic uncertainties. However, by 2024, property prices have generally stabilized with slight increases as businesses returned to full operation and foot traffic resumed, especially in high-demand areas. Suburban areas near newly developed residential projects also saw increased demand for neighborhood commercial spaces.
The following transactions represent preferred addresses for many buyers, synonymous with the middle and
upper-middle class, indicating a high level of business activity. They present a general picture of prices during and post-pandemic. The tables also show transaction data, offering a self-explanatory view of these trends.
In conclusion, the evolution of the three-storey shop market from 2020 to 2024 reflects its adaptability. The recovery from pandemic lows has brought a demand for flexible, tech-integrated, and sustainable spaces, making these properties in Malaysia valuable for both tenants and investors. The rebound signals growth potential, with an increased focus on suburban areas and community-centric businesses shaping the future of commercial real estate in Malaysia.