Malaysia’s commercial property market closed RM24.13 billion in deals in the first half of 2026.

The headline looks calm, but underneath it a sharp split is forming: some buildings are almost full, while others sit half empty.

With Johor’s data centres booming and the RTS Link and JS-SEZ around the corner, where is the money going, and what does it mean for you?

Key Takeaways

• Commercial deals held steady in 1H2026: 21,454 transactions worth RM24.13 billion, almost unchanged from a year earlier.
• Offices are splitting in two. KL Fringe buildings are 88.6% occupied, while KL’s old CBD is only 54.1% full.
• Industrial property and data centres lead demand, with Johor’s data centre vacancy at just 0.7%.
• The JS-SEZ, the RTS Link (targeted for February 2027) and a stable 2.75% OPR are the main growth drivers.
• The biggest risks are a serviced apartment overhang, new supply and construction costs up about 13%.

1. Market performance: flat volume, softer value

Commercial property held its ground in 1H2026, even as the wider market slipped. The National Property Information Centre (NAPIC) recorded 21,454 commercial transactions worth RM24.13 billion, almost unchanged from a year earlier.

Sources: NAPIC via The Edge Malaysia, 1H2026 and 1H2025.

Commercial deals made up about 11.5% of all transactions but 23% of total value. That gap is the nature of the asset class: fewer deals, bigger tickets.

2. Office: a tale of two markets

Office demand is improving, but almost all of it is going to new, green, well-located buildings. Nationwide purpose-built office occupancy rose to 78.5% in 1H2026 from 77.8%, the Finance Ministry reported.

Rents follow the same split. Offices in KL’s new CBD averaged RM7.45 psf a month in 1Q2026, against RM4.47 psf in the old CBD, according to Knight Frank.

Supply is the swing factor. About 4.61 million sq ft of new office space is due in the Klang Valley in 2026 and 2027, mostly in the KL Fringe, while KL’s overall vacancy sits near 30% (Cushman & Wakefield).

For older towers, the answer is refurbishment or conversion into hotels and homes, helped by Budget 2026 tax incentives for repurposing commercial buildings.

3. Retail: prime malls thrive, the rest compete

Retail property is holding up, but shoppers and tenants are getting choosier. Nationwide shopping complex occupancy slipped to 77.9% in 1H2026 from 78.7% a year earlier, according to the Finance Ministry.

Top malls such as Suria KLCC, Pavilion Kuala Lumpur and Mid Valley Megamall stay above 90% occupied, while older and smaller malls struggle to fill space.

Spending is growing, but slowly. Retail sales rose just 2.5% in 2Q2026, below the 4.8% retailers expected, as shoppers chased vouchers and cheaper brands.

New supply adds pressure. About 2.0 million sq ft of retail space is due in the Klang Valley by end-2026, including 118 Mall at Merdeka 118, which opens in November with more than 300 outlets.

Shop lots face their own supply wave, with completed shop units more than doubling year on year in 1Q2026. Well-located shophouses in busy townships still rent well, but check local vacancy before paying new-launch prices.

Thinking of buying a shoplot or office unit?

Work out your monthly repayments with our mortgage calculator before you start viewing.

4. Industrial, logistics and data centres: the standout

Industrial property is where the strongest demand sits. NAPIC recorded 3,932 industrial deals worth RM14.78 billion in 1H2026, with value up about 3.7% even as the number of deals fell.

Klang Valley warehouses were 96.1% occupied in 1Q2026, even after 2.8 million sq ft of new space was completed (CBRE | WTW). Another 7.2 million sq ft is due by end-2026, which could cool rental growth.

Data centres are the headline act, and Johor leads. It has 1,110 MW of live IT capacity, third in Asia Pacific, and the region’s biggest pipeline at 8,542 MW. Co-location vacancy is just 0.7%, against 4.9% in Singapore.

Land deals follow the servers. Disclosed data centre land and property deals reached about RM1.02 billion in Johor and RM1.4 billion in Selangor and KL in 1H2026.

The catch is utilities. Rising power and water tariffs are narrowing Johor’s cost edge over Singapore, and the state now vets new data centre projects through a special technical committee.

5. What is driving demand

Six forces are shaping commercial property demand in 2026, and most of them favour industrial land, prime offices and well-run malls.

• Strong investment inflows. Malaysia approved RM218.5 billion of investments in 1H2026, up 11.7%, with Selangor and Johor taking about 59%. New factories, offices and data centres all need space.
• The RTS Link. Passenger service is targeted for February 2027, and at least 20 projects have launched within 5 km of the Johor Bahru terminal.
• The JS-SEZ. The Johor-Singapore Special Economic Zone drew RM132 billion of investments from 2025 to June 2026, and qualifying firms pay a 5% corporate tax rate.
• Stable borrowing costs. Bank Negara has held the OPR at 2.75% since July 2025, most recently on 3 September 2026.
• Trade and tech flows. CBRE | WTW expects the Malaysia-US trade agreement to draw more foreign money into industrial parks, mixed-use projects and offices.
• Lower tax on rent. Service tax on rental and leasing fell to 6% from 8% on 1 January 2026, easing costs for business tenants.

6. The risks to watch

The biggest risks are too much new space in the wrong places, rising building costs and a careful consumer.

• Office oversupply. KL’s office vacancy is near 30%, and more towers complete in 2H2026. Older, non-prime buildings will feel it first.
• Rising construction costs. Developers reported costs up about 13% on average in 1H2026 as diesel and bitumen prices climbed.
• Warehouse supply. About 7.2 million sq ft of new Klang Valley industrial space by end-2026 could slow rental growth.
• Careful shoppers. With retail sales up only 2.5% in 2Q2026, malls without a clear draw will struggle to raise rents.
• Rates and geopolitics. Some economists see an OPR hike risk in 2027, and energy prices remain tied to tensions in West Asia.
• Serviced apartment overhang. 23,375 completed serviced apartments worth RM19.33 billion were unsold in 1H2026, over half priced between RM500,001 and RM1 million. See our housing overhang analysis.

7. Outlook for 2027

Expect the two-speed market to carry into 2027. Industrial, logistics, data centres and Johor should lead, while older buildings will need to upgrade, convert or cut rents.

Budget 2027 offers little direct help. Savills’ Paul Khong called it “not a property-led budget”, but still expects industrial, logistics and data centre assets and Johor’s growth corridors to do well.

The gains come indirectly: a RM15 billion TNB grid upgrade that could open data centre sites beyond the Klang Valley, plus enhanced Global Services Hub incentives from January 2027 and a planned elevated ART line in Johor Bahru.

The RTS Link start is the clearest signal of whether cross-border demand turns into higher commercial rents in Johor Bahru.

Conclusion

Malaysia’s commercial property story is no longer about recovery.

It is about relevance: buildings that match how companies now work, shop and store data are pulling ahead, and the rest are being left to reinvent themselves.

For buyers and investors, that rewards homework over headlines.

Look at how full nearby buildings are, what supply is coming within a few kilometres, and whether the asset can keep up with tenants’ rising standards.

Frequently Asked Questions

Looking to Invest in Commercial Property?

Whether you are eyeing a shoplot, an office unit or industrial land, our property consultants can help you compare locations, prices and rental potential. Leave your details below and we will get in touch.

Continue Reading:

1. Malaysia Housing Overhang 2026: Why RM300K Homes Stay Unsold
2. NAPIC Q1 2026: What Malaysia’s Property Data Means for Buyers
3. Guide to the Johor Real Estate Market Outlook (2025-2026)

References

1. Bank Negara Malaysia. (n.d.). OPR decisions. bnm.gov.my. Retrieved from https://www.bnm.gov.my/monetary-stability/opr-decisions
2. CBRE | WTW. (2026). CBRE | WTW. (2026). Klang Valley property market, 1Q 2026 [MarketView snapshot]. cbre-wtw.com.my. Retrieved from https://cbre-wtw.com.my/wp-content/uploads/2026/05/Klang-Valley-Snapshot-1Q-2026.pdf
3. EdgeProp.my. (2026, July 31). EdgeProp.my. (2026, July 31). Johor leads Asia-Pacific data centre pipeline as Klang Valley sees 1H2026 investment rebound, says Knight Frank. edgeprop.my. Retrieved from https://www.edgeprop.my/content/1916967/johor-leads-asia-pacific-data-centre-pipeline-klang-valley-sees-1h2026-investment-rebound-says-knight-frank
4. Malaysian Investment Development Authority. (2026, August 28). Malaysia secures RM218.5 billion in approved investments in 1H 2026, with domestic investment in manufacturing up 23%. mida.gov.my. Retrieved from https://www.mida.gov.my/media-release/malaysia-secures-rm218-5-billion-in-approved-investments-in-1h-2026-with-domestic-investment-in-manufacturing-up-23/
5. Ministry of Finance Malaysia. (2026, September 10). Majlis Pelancaran Laporan Pasaran Harta Separuh Pertama Tahun 2026 [Speech by the Minister of Finance II]. mof.gov.my. Retrieved from https://mof.gov.my/portal/images/2026/09/12/20260910-Teks-Ucapan-MK-II-Pelancaran-LPH-2026.pdf
6. National Property Information Centre. (n.d.). NAPIC official portal. napic.jpph.gov.my. Retrieved from https://napic.jpph.gov.my/
7. PwC Malaysia. (n.d.). Real property gains tax. In 2025/2026 Malaysian tax booklet. pwc.com. Retrieved from https://www.pwc.com/my/en/publications/mtb/real-property-gains-tax.html
8. The Edge Malaysia. (2025, September 4). Malaysia’s property market softens as deal volume dips, developers slow launches, first-half data shows. theedgemalaysia.com. Retrieved from https://theedgemalaysia.com/node/769317
9. The Edge Malaysia. (2026, June 18). Klang Valley office market showed modest improvement in 1Q2026. theedgemalaysia.com. Retrieved from https://theedgemalaysia.com/node/806058
10. The Edge Malaysia. (2026, September 10). Malaysia flags growing property overhang amid slowing transactions in 1H2026. theedgemalaysia.com. Retrieved from https://theedgemalaysia.com/node/817533

The post Commercial Property in Malaysia: 2026 Market Outlook appeared first on IQI Blog.

Malaysia’s property market entered 2026 with the sort of mixed signals that make buyers reach for coffee and a calculator.

The NAPIC Q1 2026 data shows fewer transactions, slightly higher house prices, and more completed homes sitting unsold. That does not mean the market is crashing or booming. It means buyers must read beyond the headline and use the numbers to judge price, supply, financing, and negotiation power.

Key Takeaway

• Malaysia recorded 89,966 property transactions worth RM51.09 billion in Q1 2026, with transaction volume falling 8% year-on-year.
• The Malaysian House Price Index reached 235.2 points, up 1.7% year-on-year, with the national average house price at RM507,533.
• Completed unsold residential stock reached 32,801 units, while the serviced apartment overhang increased to 19,263 units.
• The average subsale home price rose 4.8% to RM545,059, while Kuala Lumpur’s average crossed RM1 million.
• Around seven in ten subsale transactions involved homes priced at RM500,000 or below, showing that entry-level and middle-market buyers remained the main source of demand.

Estimated reading time: 17 minutes

1. What Does the NAPIC Q1 2026 Report Say About Malaysia’s Property Market?

Malaysia’s market remained stable in value but slower in activity. The total value of completed transactions barely changed from a year earlier, but fewer properties changed hands. At the same time, modest price growth and higher unsold stock created a more selective market for buyers, sellers and developers.

a. How Many Property Transactions Were Recorded in Q1 2026?

The National Property Information Center, under JPPH Malaysia, recorded 89,966 transactions worth RM51.09 billion during Q1 2026. Transaction volume fell 8% from Q1 2025, while total value declined only 0.6%.

The difference between those two figures matters. A large fall in property transaction volume, combined with a small decline in value, means the average value per completed deal remained relatively firm. The market did not suffer a broad price collapse. Instead, fewer buyers and sellers successfully completed transactions.

The residential property market remained the largest segment, accounting for 58.8% of all transactions. It recorded 52,936 deals worth RM22.60 billion during the quarter. Commercial property represented 11.6% of volume, followed by agricultural property at 20.2%, development land and other property at 7.3%, and industrial property at 2.1%.

b. Which Price Bands Recorded the Most Activity?

Homes priced at RM300,000 and below recorded 27,209 residential transactions, making this the most active residential price band. This shows that demand for affordable housing remained strong even as the overall market slowed.

However, high activity does not mean every affordable project sells easily. Financing eligibility, location, unit design, and access to daily amenities still determine whether demand turns into an actual purchase. The Malaysian Reserve noted that the below-RM300,000 segment had strong activity but also carried substantial unsold stock.

c. Malaysia Property Market Q1 2025 vs Q1 2026

The table shows a market with more completed homes but fewer new starts. Developers delivered projects already under construction while reducing immediate construction activity. This suggests greater caution over demand, financing, and future project costs.

2. Why Did Malaysian House Prices Rise While Property Transactions Fell?

House prices rose because price movement and sales activity measure different things. The house price index tracks the prices of homes sold through completed transactions. It does not measure how quickly every listed property sold or how many sellers failed to find buyers.

a. What Was the Malaysian House Price Index in Q1 2026?

The Malaysian House Price Index, or MHPI, reached 235.2 points in Q1 2026. This represented 1.7% year-on-year growth and placed the national average house price at RM507,533.

A 1.7% increase means average house prices remained firm, but it was not rapid growth. Sellers could still face longer waiting periods, especially when their asking price exceeded the prices of recent transactions in the same neighborhood.

This is why buyers should separate price direction from market liquidity. A neighborhood may record stable prices while only a small number of homes sell. In that situation, a realistic seller may complete a deal, while an optimistic seller may keep waiting.

b. Which Property Types Recorded the Strongest Growth?

Terraced and semi-detached homes recorded the strongest year-on-year house price growth, with both increasing by 2.2%. High-rise property prices rose 1.3%, while detached house prices fell 0.7%.

The results show that landed property prices generally outperformed high-rise and detached homes during the quarter. This does not mean every landed house is a good purchase. It means demand remained stronger for certain mainstream landed formats, especially where buyers could access established communities and infrastructure.

c. What Does a Thinner Market Mean for Buyers?

A market with fewer completed deals gives prepared buyers more negotiation power, particularly when a seller has been marketing a property for a long time. The strongest offer is not always the lowest offer. It is often the offer supported by approved financing, a realistic completion timeline, and clear transaction evidence.

Consider two similar condominium units in the same development. One seller prices according to a recent completed transaction, while the other follows higher online asking prices. A buyer who compares actual transactions can identify which unit offers better market value without assuming every advertised discount is a bargain.

3. How Serious Is Malaysia’s Property Overhang in Q1 2026?

Malaysia’s residential overhang became significantly larger in Q1 2026. Completed unsold residential units reached 32,801, while completed unsold serviced apartments reached 19,263. These figures create opportunities for negotiation, but they also warn buyers to examine resale demand carefully.

a. How Many Completed Residential Units Were Unsold?

Malaysia had 32,801 completed, unsold residential units valued at RM16.37 billion in Q1 2026. The number of units increased 7.6% from the preceding quarter, although their total value fell 7.7%.

For comparison, in Q1 2025, the residential overhang stood at 23,515 units, valued at RM15 billion. The rise between the two snapshots shows that the completed supply accumulated faster than buyers absorbed it.

The largest number of completed unsold residential units was recorded in Perak, at 4,063. Johor followed with 3,852 units, Selangor with 3,745 units, and Kuala Lumpur with 3,733 units.

These state totals should not be used to label an entire market as weak. Property overhang is usually concentrated in particular projects, price bands, and property types. A well-connected home with realistic pricing can perform differently from an oversupplied project elsewhere in the same state.

b. Why Is the Serviced Apartment Overhang Important?

Completed unsold serviced apartments totaled 19,263 units, valued at RM16.52 billion. Johor accounted for 9,972 units, Kuala Lumpur for 4,181 units, and Selangor for 2,407 units.

A large portion of this supply fell within the RM500,001 to RM1 million price band, accounting for 58.5% of completed unsold serviced apartments. Buyers comparing these units should examine monthly maintenance charges, occupancy, nearby supply, and past resale activity rather than focusing solely on promotional packages.

A high overhang can improve buyer negotiation power, especially when developers or owners want to reduce holding costs. It can also indicate that future resale may take longer. The correct response is not to avoid every overhang area. This investigation aims to determine why each unit remains unsold.

4. How Is Malaysia’s Subsale Property Market Performing in 2026?

Malaysia’s subsale property market started 2026 more strongly than the broader house price index. The national average subsale home price increased 4.8% year-on-year to RM545,059, compared with the MHPI’s 1.7% increase.

The subsale findings came from the IQI residential subsale report that analyzed more than 230,000 transactions recorded since 2018. Our report shows that buyers continued to pay for established locations, infrastructure, and connectivity even as overall national transaction activity slowed.

a. Which Major Subsale Markets Recorded the Strongest Performance?

Kuala Lumpur recorded the strongest growth among the major markets covered. Its average subsale house price reached RM1,024,793, a 15% year-on-year increase. Melaka’s average increased 10% to RM358,964.

Selangor, Malaysia’s largest subsale market by transaction volume, remained broadly stable at an average price of RM559,935. Penang’s average declined 2%, while Negeri Sembilan declined 5% to RM340,207, making it the most affordable of the five markets tracked in our report.

These results do not create a universal list of the best states for subsale property. Kuala Lumpur showed strong price growth, while Negeri Sembilan offered a lower average entry price. The better market depends on whether the buyer wants a home, rental income, future resale flexibility, or a lower purchase price.

b. Which Price Segments Dominated Subsale Transactions?

Nearly one-quarter of subsale purchases involved homes priced at RM250,000 or below, while roughly seven in ten involved properties below RM500,000. Homes above RM1 million accounted for 8% of transactions, and homes between RM750,000 and RM1 million accounted for 6%.

As IQI Group CEO Kashif Ansari stated, “Affordable homes remain the engine of transaction volume.” The figures show that premium urban markets may attract attention, but affordable and middle-market buyers continue to generate most secondary-market activity.

The comparison shows why buyers should not treat the secondary property market as a smaller copy of the new-home market. Subsale homes have existing transaction records, physical conditions, and neighborhood demand that buyers can examine before making an offer.

5. Is It Better to Buy a Subsale Property or a New Launch in Malaysia in 2026?

A subsale property is generally more suitable for buyers who value an established location, a completed unit, and visible transaction history. A new launch may be more suitable for buyers who prefer developer packages, newer facilities, and a longer period before completion.

a. What Are the Main Advantages of Buying a Subsale Home?

With a subsale home, buyers can inspect the actual property condition, review the surrounding neighborhood, and compare recent transactions before committing. This can reduce uncertainty about the finished product, although older homes may require repairs or renovation.

Subsale buyers can also study existing resale demand. They can examine how frequently similar units change hands and whether the location attracts owner-occupiers, tenants, or both. This is especially important in a market where transaction volume has fallen.

The seller’s situation can create room to negotiate. A financing-ready buyer may have an advantage when a property has been listed for a long period. However, the buyer should base the offer on local comparable transactions rather than a general national discount assumption.

b. What Does the New-Launch Data Show?

Developers launched 9,112 residential units in Q1 2026 and sold 1,052 units, giving a sales rate of 11.5%. Landed homes represented 61.1% of launched units, while high-rise homes represented 38.9%.

Johor recorded the highest number of new residential launches, with 2,693 units. Selangor followed with 1,904 units and Negeri Sembilan with 1,512 units. The total launch volume was lower than the 12,498 units recorded in Q1 2025.

c. Subsale vs New Launch: What Should Buyers Compare?

The subsale vs new launch decision should start with the buyer’s budget, financing position, preferred location, move-in timeline, and intended holding period. There is no single winner for every buyer.

IQI Global can help buyers compare subsale and new-launch options based on location, budget, and intended use. The final decision should still be supported by confirmation of financing, legal advice, and property-level due diligence. Contact us now!

6. How Can Buyers Use NAPIC Data Before Purchasing a Property?

Buyers should use NAPIC property data to understand the wider market, then narrow their research to the state, neighborhood, project, and property type they are considering.

7. What Should Malaysian Property Buyers Watch for During the Rest of 2026?

The most important signals are loan approvals, unsold stock, launch activity, and construction costs. These indicators show whether demand is converting into transactions and whether developers are becoming more confident.

The residential overhang in Q1 2026 was about 49% higher than in Q3 2024, according to The Malaysian Reserve. If financing remains difficult, completed unsold stock may take longer to clear.

At the same time, residential construction starts fell from 28,344 units in Q1 2025 to 8,243 units in Q1 2026. Planned residential supply increased to 12,852 units, showing that developers had future projects in the pipeline but were cautious about beginning construction immediately.

CIMB Securities senior analyst Kenny Mak Hoy Ken said tender costs for upcoming projects could increase by 5% to 15%, while launches could face delays as developers move projects into the second half of 2026.

Affordable and mid-market homes, landed properties, integrated townships, selected Johor developments, and industrial assets were identified as relatively resilient property segments. These are market themes, not guaranteed winners. Buyers must still check individual pricing, financing, and demand.

The NAPIC property market report Q1 2026 does not describe a boom or a crash. It describes a selective market. Prices held up, transactions slowed, and unsold stock grew, while the secondary property market recorded stronger price growth in several established areas.

Buyers should focus on financing, local transaction evidence, property condition, and exit demand. In 2026, preparation is more valuable than guessing the next headline.

8. Frequently Asked Questions (FAQs)

Explore suitable subsale and new-launch properties with IQI Global, or speak with a local property professional before making your next move.

Continue Reading

• Financial Terms Every Home Buyer in Malaysia Should Know Before Buying a House
• Top 10 Cheapest Neighborhoods in Klang Valley (2026)
• MM2H Explained: Why Malaysia Is a Safe Haven for Property Investors in 2026

Reference

1. Annuar, A. (2026, June 29). Property market to consolidate in 2026 as financing gap persists. The Malaysian Reserve. Retrieved from
   https://themalaysianreserve.com/2026/06/29/property-market-to-consolidate-in-2026-as-financing-gap-persists/
2. Business Today. (2026, June 22). Residential sub-sale grew 4.8% in Q1 2026, KL now RM1 million housing market. Retrieved from
   https://www.businesstoday.com.my/2026/06/22/residential-sub-sale-grew-4-8-in-q1-2026-kl-now-rm1-million-housing-market/
3. Yaacob, H. (2026, May 15). Malaysia’s property market stays stable in 1Q2026 with transactions near 90,000 units worth RM51.9b, says JPPH. EdgeProp. Retrieved from https://www.edgeprop.my/content/1916127/malaysias-property-market-stays-stable-1q2026-transactions-near-90000-units-worth-rm519b-says-jpph
4. Malay Mail. (2026, June 22). Malaysia’s subsale home prices climb 4.8pc to RM545,059, Kuala Lumpur breaks RM1m mark. Retrieved from
   https://www.malaymail.com/news/malaysia/2026/06/22/malaysias-subsale-home-prices-climb-48pc-to-rm545059-kuala-lumpur-breaks-rm1m-mark/224728
5. National Property Information Centre. (2026). Property market Q1 2026 snapshots. Retrieved from https://napic.jpph.gov.my/storage/app/media/3-penerbitan/Shahrul/SnapShot/Q1%202026/Snapshot%20Q1%202026%20EN.pdf
6. National Property Information Centre. (n.d.). Property market Q1 2025 snapshots. Retrieved from https://napic.jpph.gov.my/storage/app/media//3-penerbitan/Shahrul/SnapShot/Q1%202025/1.%20Property%20Market%20Q1%202025%20Snapshots.pdf
7. Sharen Kaur. (2026, June 26). Malaysia’s property sector faces rising costs, delayed launches amid softer demand [WATCH]. New Straits Times. Retrieved from https://www.nst.com.my/property/2026/06/1473180/malaysias-property-sector-faces-rising-costs-delayed-launches-amid-softer
8. Yaacob, H. (2026, May 15). Malaysia’s property market stays stable in 1Q2026 with transactions near 90,000 units worth RM51.9b, says JPPH. EdgeProp. Retrieved from https://www.edgeprop.my/content/1916127/malaysias-property-market-stays-stable-1q2026-transactions-near-90000-units-worth-rm519b-says-jpph

The post NAPIC Q1 2026: What Malaysia’s Property Data Means for Buyers appeared first on IQI Blog.

Does looking at property market data make you feel dizzy? You are not alone. Whether you are thinking of buying your first home or looking for a solid investment, the numbers can be confusing. Are prices going up? Is the market crashing? Should you wait?

The data is officially out, and it paints a picture of a “selectively” strong market. While fewer people are buying, those who are are spending much more.

We analyzed the huge NAPIC Q3 2025 report so you don’t have to. Here is exactly what the latest numbers mean for your wallet.

Key Takeaways

• House Prices are Stable: The Malaysia House Price Index (MHPI) grew by a tiny 0.1%, to 229.1 points, with an average house price of RM494,384.
• Smart Money is Moving: Transaction volume fell 3.5%, but transaction value rose 12.5% to RM64.39 billion, indicating a shift toward premium properties.
• Overhang Alert: The number of unsold completed homes rose to 28,672 units, valued at RM17.25 billion, driven mainly by condos and serviced apartments.
• Affordability Help: The Overnight Policy Rate (OPR) is lower at 2.75%, making loan repayments slightly easier for new buyers.

1. Is the Malaysian Housing Market Recovering in 2025?

The short answer is: Yes, but it is taking a “breather” rather than sprinting.

According to the NAPIC Q3 2025 Property Market Report, the market is currently in a “stabilisation” phase. This means we aren’t seeing crazy price spikes (which is suitable for buyers), but we also aren’t seeing a crash (which is ideal for homeowners).

Let me give you an example to illustrate this: Imagine the property market is a car. In 2024, the car was speeding up. Now, in Q3 2025, the driver has taken their foot off the gas and is cruising at a steady speed. It’s still moving forward, just not as aggressively.

The average house price across Malaysia is now roughly RM494,384. While this is stable, it varies wildly depending on where you look.

a. State-by-State Price Growth Comparison (Year-on-Year)

Here is a look at how different states performed according to the NAPIC MHPI Q1-Q2 2025 Report:

2. How Did Transaction Volumes Change in NAPIC Q3 2025?

This is where the data gets interesting. You might hear people say “the market is slowing down” when transaction volume declines. But that is only half the story.

According to NAPIC’s Q3 2025 Snapshots, the transaction volume (number of units sold) dropped by 3.5% to 108,250 transactions. However, the transaction value (total spend) increased by 12.5%.

a. What does this mean for you?

It means buyers are becoming pickier. Speculators who buy “cheap” units to flip quickly are exiting the market. They are being replaced by serious homebuyers and investors purchasing more expensive, higher-quality homes.

Think of it like this: Ali used to buy 10 cheap apples for RM1 each (Total RM10). Now, Ahmad buys 5 premium organic apples for RM3 each (Total RM15). Even though fewer apples were sold (volume down), the shop owner made more money (value up).

The takeaway? Malaysia property trends suggest quality is winning over quantity right now.

3. Why Overhang Property Numbers Matter to Buyers

If you are looking for a deal, pay close attention to the overhang property statistics in Malaysia.

“Overhang” refers to completed houses that have been sitting there with Certificates of Completion and Compliance (CCC) but remain unsold for more than 9 months.

According to the NAPIC Q3 2025 Malaysia Property Market Report, the number of unsold residential units increased to 28,672. The scarier number is likely the Serviced Apartment overhang, which stands at 17,892 units.

a. Where are these unsold units?

If you are buying in these three states, you might have negotiation power because developers are desperate to clear stock:

1. Perak: 3,300 unsold residential units.
2. Johor: 3,293 unsold residential units (Plus a massive 9,018 unsold serviced apartments!).
3. Sabah: 2,771 unsold residential units.

The data reveals that nearly 60% of unsold Serviced Apartments are priced between RM500,001 and RM1 million. This tells us that developers built too many fancy high-rises that the average Malaysian cannot afford or doesn’t want.

4. Commercial & Industrial: The Hidden Gems

While everyone is obsessed with houses, the real star of Malaysian real estate might be the industrial sector.

Based on NAPIC’s Q1, H1, and Q3 2025 snapshots, the industrial sector is stable and growing. Why? Because we all love shopping online. E-commerce requires warehouses, logistics hubs, and factories.

Industrial Supply Data (Q3 2025):

• Starts (Construction beginning): 2,747 units (huge jump from Q1).
• Completions: 2,292 units.

If you are an investor tired of residential tenants, this sector is where the growth is happening. Even shop lots are performing well, as traditional businesses like F&B and clinics continue to fill up ground-floor spaces in mature neighborhoods.

5. Should You Buy Property in Malaysia Based on NAPIC Q3 2025?

So, is 2025 the year to sign that Sales and Purchase Agreement?

The NAPIC Q3 indicators point to a safe, albeit slow, market. With the OPR at 2.75%, borrowing costs are reasonable compared to global standards.

Government initiatives mentioned by JPPH, like the Skim Jaminan Kredit Perumahan (SJKP) and tax relief for homes priced RM500k–RM750k are actively trying to help first-time buyers enter the market before Malaysia property outlook 2026 potentially sees prices rise again.

Tips:

• Buy for Own Stay: Yes. Prices are stable (flat), interest rates are decent, and you have plenty of unsold stock to choose from.
• Buy for Investment: Be careful. Avoid generic high-rises in KL and Johor unless they are near transit lines (RTS, MRT3). Look at landed properties in growing suburbs (like Perlis or the outskirts of Selangor) where demand is stripping supply.

Waiting too long might risk missing this “stabilization window.” Once surplus stock is cleared, prices usually go only one way—up.

6. Frequently Asked Questions (FAQ)

The market is stabilizing, meaning now is the time to spot the best deals. Don’t navigate the Malaysian market alone. Partner with IQI to find high-yield properties in growing hotspots like Johor and Perlis. Secure your future wealth, connect with an IQI today!

Continue Reading

1. How to Avoid Buying an Abandoned House Project in Malaysia
2. The 10 Best Affordable Housing Programmes in Malaysia
3. Why Malaysia’s Tourism Boom is Creating Prime Investment Opportunities in 2025

Reference

1. Fezili, F. (2025, November 19). NAPIC Q3 2025: Are Malaysian house prices rising or stabilising? Property Genie. Retrieved from
   https://www.propertygenie.com.my/insider-guide/napic-q3-2025-are-malaysian-house-prices-rising-or-stabilising-K8QJZ3Z2ftMkPN4eCW2cAg
2. Fezili, F. (2025, November 19). NAPIC Q3 2025: Malaysia property market report & trends for homebuyers and investors. Property Genie. Retrieved from
   https://www.propertygenie.com.my/insider-guide/napic-q3-2025-malaysia-property-market-report-trends-for-homebuyers-and-investors-EDbtihPQDE59kp2E3vo68F
3. Jabatan Penilaian dan Perkhidmatan Harta (JPPH). (2025, November 14). Siaran media: Pelancaran siaran pasaran harta Q3 2025 – pasaran harta tanah catat momentum pertumbuhan sederhana. Retrieved from
   https://napic.jpph.gov.my/storage/app/media//3-penerbitan/Shahrul/Kenyataan%20Media/Q3%202025/SIARAN%20MEDIA%20LAPORAN%20PASARAN%20HARTA%20Q3%202025.pdf
4. Malay Mail. (2025, November 14). Malaysia’s property market posts moderate Q3 growth despite cautious sentiment. Retrieved from
   https://www.malaymail.com/news/malaysia/2025/11/14/malaysias-property-market-posts-moderate-q3-growth-despite-cautious-sentiment/198323
5. National Property Information Centre (NAPIC). (2025). Malaysian house price index Q1 – Q2 2025P. Retrieved from
   https://napic.jpph.gov.my/storage/app/media/3-penerbitan/Shahrul/Bahagian%20Indeks%20Harta%20Tanah/Laporan%20Jadual%20MHPI/Q2%202025/Report%20MHPI%20Q1-Q2%202025P.pdf
6. National Property Information Centre (NAPIC). (2025). Property market Q3 2025 snapshots. Retrieved from
   https://www.facebook.com/NapicJpph/posts/property-market-q3-2025-snapshotsvisit-our-portal-for-more-information-napicjpph/1427974072666227/
7. Terra Group. (2025, November 15). Malaysia commercial property market 2025: Stabilising demand & new opportunities ahead. Terra Group. Retrieved from
   https://terragroup.my/blogs/malaysia-commercial-property-market-2025-stabilising-demand-new-opportunities-ahead

The post NAPIC Q3 2025: What Does It Mean to the Malaysian Property Market? appeared first on IQI Blog.

Malaysia’s National Property Information Centre (NAPIC) recently released its Property Market Activity and Status reports for 2022.

The property market has shown a significant improvement compared to the previous year.

Learn more about Malaysia’s property market in 2022 below!

1. Summary

2022 saw an increase of 29.5% in property transaction volume respectively, compared to the same period in 2021.

The property market saw a transaction value of RM179.07 billion and a total volume of 389,107 units in 2022.

2. Transaction Value By Sub-sector

2022 showed a total of RM179.07 billion in total transaction value.

The highest contributor was the residential sector, bringing in a total of RM94.28 billion, followed by the commercial sector with a value of RM32.61 billion.

3. Transaction Volume By Sub-sector

2022 saw a total of 389,107 transactions, with the highest contributor being the residential sector, bringing in a total of 62.5% of the total transaction volume, followed by the agriculture sector with 21.1%.

4. Transaction Volume: Year-on-Year (Y-o-Y) Change

The volume of transactions in 2022 had a significant jump compared to the previous period, with an growth of 29.5% at 389,107 transactions.

The previous period, 2021 showed a number of 300,497 transactions.

5. Newly Launched Residential Units

In 2022, there were a total of 24,366 residential high-rise units launched, as well as some 29,752 units of landed homes, making up a total of 54,118 units.

From this total, 8,012 units of high-rises and 11,485 units of landed homes were sold, comprising of 38.6% and 32.9% of the total units respectively.

In total, 19,497 units were sold, at 36.0% of the total number of units.

This is one of the best times to start investing. Need expert advice in real estate investment?

Drop your details below to get connected to our team of professionals!

The post [Infographic] Malaysia Property Outlook 2022 appeared first on IQI Blog.

While the current environment of once-again eased restrictions offers room for improvement in Q2 2021, the property market is expected to put in a mixed performance for the duration of the year while pandemic-related uncertainties persist.

Property Transactions

• The total volume as of Q1 2021 was 80,694, with a value of RM 32.12 billion 

Read more;

What You Need to Know About Malaysia’s Covid-19 Vaccine Program 2021

Juwai IQI Newsletter – Real Estate Market – June 2021

Construction Activity 

• There were 3 types of development in construction done in Q1 2021 – residential (landed and high rise), service apartments and commercial units (shops). 
• A total of 17,550 units have been completed, 40,766 have started and 15,181 in the planning. 

Malaysian House Price Index

• While the average price of the property types (terraced, high rise, semi-detached, detached) has decreased between -0.1% to -0.8%, the numbers are still strong compared to Q4 2020. 

What to look forward to in Q2 2021?

• The HOC extension in 2021 means that buyers still have access to attractive financing incentives.
• The rise of affordable homes priced at RM500,000 and below are expected to dominate the market in the coming months.
• The various major infrastructure projects, be it completed or in the progress – the East Klang Valley Expressway, the Rapid Transit System, Kulai Iskandar Data Exchange projects in Johor, the East Coast Rail Link and Pan Borneo Highway in East Malaysia.
• The growing tech evolution in the property sector – offering more solutions to the property selection and decision-making process for home seekers.

Source: National Property Information Centre

Would you like to invest in Malaysia, a growing potential and the choice of many? IQI Global is your answer!

Let us help you with your investment needs. Fill in your details below, and we will be in touch!

The post Property Market Q1 2021: COVID-19 vaccine rollout an important role appeared first on IQI Blog.

National Property Information Centre (NAPIC) released its much-awaited annual property market report on 29^th April 2020. Let’s take a look at the highlights and analyse the trends of the real estate industry.

1. In 2019, both transaction volume and total transaction value increase

According to the report, the real estate transaction volume in 2019 was 328,647 transactions worth RM141.40 billion was recorded, an increase of 4.8% as compared to 2018. In terms of total transactions value, real estate transaction value in 2019 increased by 0.8%.

2. Residential property market is the only market which saw a positive value growth, with property price range of RM300,000 and below being the most favored

In 2019, the total number of residential transactions across the country was 209,295, with a total value of RM72.41 billion, which shows an increase of 6% in volume and 5.3% in value from 2018 (197,385 transactions with a total value of RM68.75 billion).

According to the report, residential sub-sector accounts for 63.7% of the total market, followed by agriculture sub-sector (20.9%), commercial (7.8%), development land (5.7%) and industrial (1.9%).

From a value perspective, the top three rankings are residential (51.2%), commercial (20.5%) and industrial (10.5%).

Among these sectors, affordable housing in the price range of RM300,000 and below remains a popular choice, accounting for 61.7% of the residential market transaction, followed by properties with a price range of RM300,000 to 500,000, accounting for 21.3% of the residential market transaction.

3. Most of the states recorded higher residential property sales in 2019

The improved property sales occurred in major states such as Kuala Lumpur (1.1%), Selangor (8.9%), Johor (7.5%) and Pulau Pinang (1.3%). These four states recorded 50% of the total residential property volume.

According to the chart below, it shows that the most popular types of residential property are terraced houses, which accounted for approximately 40% of the total property sales, which is then followed by high-rise units at approximately 15%.

Read More

Affordable housing: A simple guide

Why should you know about BSN MyHome (Youth Housing Scheme)

4. The overhang residential properties situation in Malaysia has improved. The number of overhang residential properties decreased for the first time after 4 years.

Overhang is defined as a property that remains unsold nine months after it was completed.

According to the report, there were 30,664 overhang units worth RM18.82 billion, which indicates a decrease of 5.1% in volume and 5.2% in value against 2018 (32,313 units worth RM19.86 billion).

By type, condominium/apartment units accounted for 46.6% (14,276 units) of the national overhang and most were in the price range of RM200,000 – RM300,000 (3,863 units). Two to three-storey terrace homes (8,591 units) contributed 28%, where around 1,771 units cost between RM300,000 – RM400,000.

5. Overhang for serviced apartments continues to worsen in 2019

The serviced apartments overhang continues to increase as there were a total of 17,142 overhang units with a value of RM15.04 billion. The volume and value increased by 51% and 65% respectively from 2018.

Johor reported the highest serviced apartment overhang with 71.2% share in volume (12,207 units) and 76.9% share in value (RM11.56 billion). The state held a 34.0% share (11,490 units) of the country’s unsold under construction.

Perak came second with 5,024 units worth RM 1.52 billion, followed by Selangor (4,687 units worth RM3.75 billion) and Pulau Pinang (3,353 units worth RM2.59 billion).

Units above RM1 million consisted of 37.4% of the total overhang, 20.3% of the total unsold under construction and 19.5% of the total unsold not constructed. For the latter, units in the price range of RM300,000 – RM400,000 formed 33.0% of the total.

6. The Malaysian House Price Index (MHPI) increased by 1.9% in 2019

The report stated that the Malaysian House Price Index (MHPI) in 2019 stood at 197.5 points (base year 2010), an increase of 1.9% (3.8 points) as compared to (2018 (193.7 points).

The average house price in 2019 is RM426, 155. Detached houses were considered the most expensive property type with an average price of RM667, 210 which is then followed by semi-detached houses with an average price of RM664,227, terraced houses were at RM390,763 and high-rise (apartments & condominiums) at RM341,847.

According to the report, all states recorded positive annual price growth apart from Kuala Lumpur, whereby the average house price fell by 0.4%, from RM788, 000 in the previous year to RM785, 000.

Read More

7 necessary costs when buying your dream home

PEPS: Allow 100 % loan for first-time property buyers

7. The office sub-sector does not look promising

The overall performance of office sub-sector is not looking so good as the overall occupancy rate dropped to 80.6% in 2019, decrease from 82.4% in 2018 at a national level.

Private office buildings recorded average occupancy rate at 74.8%; while Kuala Lumpur and Penang secured higher occupancy rate at 76.9% and 76.5%, respectively.

While, Selangor and Johor recorded lower-than-national level rate at 70% and 65.7%, respectively. Private office buildings in Putrajaya recorded the lowest occupancy rate at 37.6%.

8. Increase the number of property loans being approved in 2019

The report shows that loan application and total loan approval for the purchase of residential property in 2019 increased by 8.3% and 8.6%, respectively.

In the non-residential sector, the number of loan applications and total loan approvals increased by 0.6% and 4.0%, respectively.

In the residential sector, the ratio of loan applications was at 43.2%, a slight increase from 43.1% in 2018. As for the non-residential property, it was at 37.5% in 2019 whereas in 2018 it was 36.3%.

9. What will the real estate market outlook be like in 2020?

Due to the unforeseeable outbreak of COVID-19, the real estate market will be going through an uncertain time. Despite the uncertainties, the report predicts that the Malaysian property market will maintain resilience for the coming year.

In the report, it further clarified that Malaysia is expected to face several challenges including:

• Residential, commercial and leisure industries are predicted to face challenges
• Market activity and absorption may be slower due to current economic and financial conditions
• Overhang and unsold properties may probably rise in 2020
• Prices are expected to soften
• Expected pressure on rents

However, the Malaysian government is implementing various measures to assist the real estate market to cope with this challenging period, including focusing on affordable housing, revising the base year for Real Property Gains Tax (RPGT), and also the reduction of the OPR by 50 basis points to 2%, extend HOC & stamp duty incentives given to first time home buyers and enhancing government-assisted housing programmes and financing/rental programmes.

Source: Napic 

Interested in purchasing a home or investing but unsure of how to begin or what steps need to be taken? Our team of professional real estate agents will be able to help you every step of the way. Provide your details in the form below and we’ll be more than happy to assist you. 

The post 9 Key Takeaways from NAPIC Real Estate Malaysia Market Report 2019 appeared first on IQI Blog.