{"id":120972,"date":"2025-12-10T17:58:10","date_gmt":"2025-12-10T09:58:10","guid":{"rendered":"https:\/\/iqiglobal.com\/blog\/?p=120972"},"modified":"2026-01-09T15:54:18","modified_gmt":"2026-01-09T07:54:18","slug":"napic-q3-2025","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/napic-q3-2025\/","title":{"rendered":"NAPIC Q3 2025: What Does It Mean to the Malaysian Property Market?"},"content":{"rendered":"\n

\"Is — Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
Here is a look at how different states performed according to the NAPIC MHPI Q1-Q2 2025 Report<\/strong>:<\/p>\n\n\n\n
State<\/th> Price Trend<\/th> Insight<\/th><\/tr><\/thead>
Perlis<\/strong><\/td> +7.2%<\/strong><\/td> Highest growth due to local demand for affordable landed homes.<\/td><\/tr>
Johor<\/strong><\/td> +5.7%<\/strong><\/td> Strong demand driven by RTS link and industrial boom.<\/td><\/tr>
Kelantan<\/strong><\/td> +5.6%<\/strong><\/td> Steady local demand.<\/td><\/tr>
Selangor<\/strong><\/td> 0.0%<\/strong><\/td> Prices remained completely flat\/stable.<\/td><\/tr>
Kuala Lumpur<\/strong><\/td> -4.3%<\/strong><\/td> Price correction in the high-rise segment due to oversupply.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
2. How Did Transaction Volumes Change in NAPIC Q3 2025?<\/h2>\n\n\n\n
$\"How$ <\/figure>\n\n\n\n
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.<\/p>\n\n\n\n
According to NAPIC’s Q3 2025 Snapshots, the transaction volume (number of units sold) dropped by 3.5%<\/strong> to 108,250 transactions<\/strong>. However, the transaction value<\/strong> (total spend) increased<\/strong><\/span> by 12.5%<\/strong>.<\/p>\n\n\n\n
a. What does this mean for you?<\/h3>\n\n\n\n
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.<\/p>\n\n\n\n
Think of it like this: Ali<\/strong> used to buy 10 cheap apples for RM1 each (Total RM10). Now, Ahmad<\/strong> 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).<\/p>\n\n\n\n
The takeaway? Malaysia property trends<\/strong> suggest quality is winning over quantity right now.<\/p>\n\n\n\n
3. Why Overhang Property Numbers Matter to Buyers<\/h2>\n\n\n\n
If you are looking for a deal, pay close attention to the overhang property sta<\/span>tistics in Malaysia.<\/strong><\/p>\n\n\n\n
“Overhang” refers to completed houses that have been sitting there with Certificates of Completion and Compliance<\/em> (CCC) but remain unsold for more than 9 months.<\/p>\n\n\n\n
$\"Why$
Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
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<\/strong> overhang, which stands at 17,892 units<\/strong>.<\/p>\n\n\n\n
a. Where are these unsold units?<\/strong><\/h3>\n\n\n\n
$\"Where$
Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
If you are buying in these three states, you might have negotiation power because developers are desperate to clear stock:<\/p>\n\n\n\n
\n
Perak:<\/strong> 3,300 unsold residential units.<\/li>\n\n\n\n
Johor:<\/strong> 3,293 unsold residential units (Plus a massive 9,018<\/strong> unsold serviced apartments!).<\/li>\n\n\n\n
Sabah:<\/strong> 2,771 unsold residential units.<\/li>\n<\/ol>\n\n\n\n
The data reveals that nearly 60%<\/strong> of unsold Serviced Apartments are priced between RM500,001 and RM1 million<\/strong>. This tells us that developers built too many fancy high-rises that the average Malaysian cannot afford or doesn’t want.<\/p>\n\n\n\n
4. Commercial & Industrial: The Hidden Gems<\/h2>\n\n\n\n
While everyone is obsessed with houses, the real star of Malaysian rea<\/strong><\/span>l estate<\/strong> might be the industrial sector.<\/p>\n\n\n\n
Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
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.<\/p>\n\n\n\n
Industrial Supply Data (Q3 2025):<\/strong><\/p>\n\n\n\n
\n
Starts (Construction beginning):<\/strong> 2,747 units (huge jump from Q1).<\/li>\n\n\n\n
Completions:<\/strong> 2,292 units.<\/li>\n<\/ul>\n\n\n\n
If you are an investor tired of residential tenants, this sector is where the growth is happening. Even shop lots<\/strong> are performing well, as traditional businesses like F&B and clinics continue to fill up ground-floor spaces in mature neighborhoods.<\/p>\n\n\n\n
5. Should You Buy Property in Malaysia Based on NAPIC Q3 2025?<\/h2>\n\n\n\n
$\"Should$ <\/figure>\n\n\n\n
So, is 2025 the year to sign that Sales and Purchase Agreement?<\/p>\n\n\n\n
The NAPIC Q3<\/strong> indicators point to a safe, albeit slow, market. With the OPR at 2.75%<\/strong>, borrowing costs are reasonable compared to global standards.<\/p>\n\n\n\n
Government initiatives mentioned by JPPH<\/strong>, like the Skim Jaminan Kredit Perumahan (SJKP)<\/strong> and tax relief for homes priced RM500k–RM750k are actively trying to help first-time buyers enter the market before Malaysia property outlook 2026<\/strong> potentially sees prices rise again.<\/p>\n\n\n\n
Tips:<\/strong><\/p>\n\n\n\n
\n
Buy for Own Stay:<\/strong> Yes. Prices are stable (flat), interest rates are decent, and you have plenty of unsold stock to choose from.<\/li>\n\n\n\n
Buy for Investment:<\/strong> 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.<\/li>\n<\/ul>\n\n\n\n
Waiting too long might risk missing this “stabilization window.” Once surplus stock is cleared, prices usually go only one way—up.<\/p>\n\n\n\n
6. Frequently Asked Questions (FAQ)<\/h2>\n\n\n\n
\n
How does NAPIC Q3 2025 affect house prices?<\/strong><\/p><\/div>

\n
According to NAPIC Q3 2025, house prices are stabilizing rather than rising sharply. The House Price Index grew by only 0.1%, meaning prices are effectively flat in many areas, creating a “buyer’s market.”<\/p>\n<\/div><\/div>\n\n\n\n
Which state recorded the highest house price growth in Q3 2025?<\/strong><\/p><\/div>

\n
Surprisingly, Perlis recorded the highest year-on-year growth at 7.2%, followed by Johor at 5.7%. Meanwhile, Kuala Lumpur saw prices drop by 4.3%.<\/p>\n<\/div><\/div>\n\n\n\n
What is the current property overhang situation in Malaysia?<\/strong><\/p><\/div>

\n
The overhang is rising. As of Q3 2025, there are 28,672 unsold residential units and nearly 17,900 unsold serviced apartments, mainly in the RM500k–RM1m price range.<\/p>\n<\/div><\/div>\n\n\n\n
Is now a good time to buy property in Malaysia?<\/strong><\/p><\/div>

\n
Yes, primarily due to the stabilizing prices and the OPR being lower at 2.75%. First-time buyers can also benefit from government tax reliefs announced in Budget 2025.<\/p>\n<\/div><\/div>\n\n\n\n
What happened to transaction volumes in NAPIC Q3?<\/strong><\/p><\/div>

\n
Transaction volumes dropped by 3.5%, but the total value of those transactions increased by 12.5%<\/strong>. This means fewer people are buying, but those who are are purchasing more expensive, higher-value properties.<\/p>\n<\/div><\/div>\n\n\n\n
Why are there so many unsold serviced apartments?<\/strong><\/p><\/div>

\n
Developers overbuilt high-end units in the RM500,000 to RM1 million range in areas like Johor and Kuala Lumpur, exceeding local affordability and demand.<\/p>\n<\/div><\/div>\n\n\n\n
Are commercial properties performing better than residential in 2025?<\/strong><\/p><\/div>

\n
In some segments, yes. Industrial properties (warehouses\/factories) are seeing vigorous construction activity and demand amid the logistics boom, whereas high-rise residential units are facing saturation.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n
\n\n\n\n
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!<\/mark><\/strong><\/p>\n\n\n\n\t
\n\t\t\n \n\t\t\n\t\t\n\n \n
\n Full Name:<\/label>
\n \n <\/div>\n\n\t\t
\n Location:<\/label>
\n \n\t\t\t<\/div>\n\n\t\t\t
\n\t\t\t\tPhone Number:<\/label>
\n\t\t\t\t
\n\t\t\t\t\t+60<\/span>\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n \t<\/div>\n\n\t\t
\n\t\t\tPlease select at least one interest.\n\t\t<\/div>\n\n\t\t
\n\t\t\t
\n\t\t\t\tI want to (Investor)<\/label>
\n\t\t\t\t Invest<\/label>
\n\t\t\t\t Buy<\/label>
\n\t\t\t\t Sell<\/label>
\n\t\t\t<\/p>\n\t\t<\/div>\n\n\t\t
\n\t\t\t I give my consent to share my information to submit this form. For more details on our data practices, please refer to our Privacy Policy.<\/a><\/label>
\n\t\t\t\n\t\t\t I want the latest property updates, marketing emails, and newsletters from IQI Global by subscribing to IQI Global mailing list<\/label>
\n\t\t<\/div>\n\n\t\t\n\n\n
\n

\"State-by-State — Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
Here is a look at how different states performed according to the NAPIC MHPI Q1-Q2 2025 Report<\/strong>:<\/p>\n\n\n\n
State<\/th> Price Trend<\/th> Insight<\/th><\/tr><\/thead>
Perlis<\/strong><\/td> +7.2%<\/strong><\/td> Highest growth due to local demand for affordable landed homes.<\/td><\/tr>
Johor<\/strong><\/td> +5.7%<\/strong><\/td> Strong demand driven by RTS link and industrial boom.<\/td><\/tr>
Kelantan<\/strong><\/td> +5.6%<\/strong><\/td> Steady local demand.<\/td><\/tr>
Selangor<\/strong><\/td> 0.0%<\/strong><\/td> Prices remained completely flat\/stable.<\/td><\/tr>
Kuala Lumpur<\/strong><\/td> -4.3%<\/strong><\/td> Price correction in the high-rise segment due to oversupply.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
2. How Did Transaction Volumes Change in NAPIC Q3 2025?<\/h2>\n\n\n\n
$\"How$ <\/figure>\n\n\n\n
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.<\/p>\n\n\n\n
According to NAPIC’s Q3 2025 Snapshots, the transaction volume (number of units sold) dropped by 3.5%<\/strong> to 108,250 transactions<\/strong>. However, the transaction value<\/strong> (total spend) increased<\/strong><\/span> by 12.5%<\/strong>.<\/p>\n\n\n\n
a. What does this mean for you?<\/h3>\n\n\n\n
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.<\/p>\n\n\n\n
Think of it like this: Ali<\/strong> used to buy 10 cheap apples for RM1 each (Total RM10). Now, Ahmad<\/strong> 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).<\/p>\n\n\n\n
The takeaway? Malaysia property trends<\/strong> suggest quality is winning over quantity right now.<\/p>\n\n\n\n
3. Why Overhang Property Numbers Matter to Buyers<\/h2>\n\n\n\n
If you are looking for a deal, pay close attention to the overhang property sta<\/span>tistics in Malaysia.<\/strong><\/p>\n\n\n\n
“Overhang” refers to completed houses that have been sitting there with Certificates of Completion and Compliance<\/em> (CCC) but remain unsold for more than 9 months.<\/p>\n\n\n\n
$\"Why$
Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
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<\/strong> overhang, which stands at 17,892 units<\/strong>.<\/p>\n\n\n\n
a. Where are these unsold units?<\/strong><\/h3>\n\n\n\n
$\"Where$
Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
If you are buying in these three states, you might have negotiation power because developers are desperate to clear stock:<\/p>\n\n\n\n
\n
Perak:<\/strong> 3,300 unsold residential units.<\/li>\n\n\n\n
Johor:<\/strong> 3,293 unsold residential units (Plus a massive 9,018<\/strong> unsold serviced apartments!).<\/li>\n\n\n\n
Sabah:<\/strong> 2,771 unsold residential units.<\/li>\n<\/ol>\n\n\n\n
The data reveals that nearly 60%<\/strong> of unsold Serviced Apartments are priced between RM500,001 and RM1 million<\/strong>. This tells us that developers built too many fancy high-rises that the average Malaysian cannot afford or doesn’t want.<\/p>\n\n\n\n
4. Commercial & Industrial: The Hidden Gems<\/h2>\n\n\n\n
While everyone is obsessed with houses, the real star of Malaysian rea<\/strong><\/span>l estate<\/strong> might be the industrial sector.<\/p>\n\n\n\n
Source: NAPIC<\/figcaption><\/figure>\n\n\n\n
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.<\/p>\n\n\n\n
Industrial Supply Data (Q3 2025):<\/strong><\/p>\n\n\n\n
\n
Starts (Construction beginning):<\/strong> 2,747 units (huge jump from Q1).<\/li>\n\n\n\n
Completions:<\/strong> 2,292 units.<\/li>\n<\/ul>\n\n\n\n
If you are an investor tired of residential tenants, this sector is where the growth is happening. Even shop lots<\/strong> are performing well, as traditional businesses like F&B and clinics continue to fill up ground-floor spaces in mature neighborhoods.<\/p>\n\n\n\n
5. Should You Buy Property in Malaysia Based on NAPIC Q3 2025?<\/h2>\n\n\n\n
$\"Should$ <\/figure>\n\n\n\n
So, is 2025 the year to sign that Sales and Purchase Agreement?<\/p>\n\n\n\n
The NAPIC Q3<\/strong> indicators point to a safe, albeit slow, market. With the OPR at 2.75%<\/strong>, borrowing costs are reasonable compared to global standards.<\/p>\n\n\n\n
Government initiatives mentioned by JPPH<\/strong>, like the Skim Jaminan Kredit Perumahan (SJKP)<\/strong> and tax relief for homes priced RM500k–RM750k are actively trying to help first-time buyers enter the market before Malaysia property outlook 2026<\/strong> potentially sees prices rise again.<\/p>\n\n\n\n
Tips:<\/strong><\/p>\n\n\n\n
\n
Buy for Own Stay:<\/strong> Yes. Prices are stable (flat), interest rates are decent, and you have plenty of unsold stock to choose from.<\/li>\n\n\n\n
Buy for Investment:<\/strong> 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.<\/li>\n<\/ul>\n\n\n\n
Waiting too long might risk missing this “stabilization window.” Once surplus stock is cleared, prices usually go only one way—up.<\/p>\n\n\n\n
6. Frequently Asked Questions (FAQ)<\/h2>\n\n\n\n
\n
How does NAPIC Q3 2025 affect house prices?<\/strong><\/p><\/div>

\n
According to NAPIC Q3 2025, house prices are stabilizing rather than rising sharply. The House Price Index grew by only 0.1%, meaning prices are effectively flat in many areas, creating a “buyer’s market.”<\/p>\n<\/div><\/div>\n\n\n\n
Which state recorded the highest house price growth in Q3 2025?<\/strong><\/p><\/div>

\n
Surprisingly, Perlis recorded the highest year-on-year growth at 7.2%, followed by Johor at 5.7%. Meanwhile, Kuala Lumpur saw prices drop by 4.3%.<\/p>\n<\/div><\/div>\n\n\n\n
What is the current property overhang situation in Malaysia?<\/strong><\/p><\/div>

\n
The overhang is rising. As of Q3 2025, there are 28,672 unsold residential units and nearly 17,900 unsold serviced apartments, mainly in the RM500k–RM1m price range.<\/p>\n<\/div><\/div>\n\n\n\n
Is now a good time to buy property in Malaysia?<\/strong><\/p><\/div>

\n
Yes, primarily due to the stabilizing prices and the OPR being lower at 2.75%. First-time buyers can also benefit from government tax reliefs announced in Budget 2025.<\/p>\n<\/div><\/div>\n\n\n\n
What happened to transaction volumes in NAPIC Q3?<\/strong><\/p><\/div>

\n
Transaction volumes dropped by 3.5%, but the total value of those transactions increased by 12.5%<\/strong>. This means fewer people are buying, but those who are are purchasing more expensive, higher-value properties.<\/p>\n<\/div><\/div>\n\n\n\n
Why are there so many unsold serviced apartments?<\/strong><\/p><\/div>

\n
Developers overbuilt high-end units in the RM500,000 to RM1 million range in areas like Johor and Kuala Lumpur, exceeding local affordability and demand.<\/p>\n<\/div><\/div>\n\n\n\n
Are commercial properties performing better than residential in 2025?<\/strong><\/p><\/div>

\n
In some segments, yes. Industrial properties (warehouses\/factories) are seeing vigorous construction activity and demand amid the logistics boom, whereas high-rise residential units are facing saturation.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n
\n\n\n\n
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!<\/mark><\/strong><\/p>\n\n\n\n\t
\n\t\t\n \n\t\t\n\t\t\n\n \n
\n Full Name:<\/label>
\n \n <\/div>\n\n\t\t
\n Location:<\/label>
\n \n\t\t\t<\/div>\n\n\t\t\t
\n\t\t\t\tPhone Number:<\/label>
\n\t\t\t\t
\n\t\t\t\t\t+60<\/span>\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n \t<\/div>\n\n\t\t
\n\t\t\tPlease select at least one interest.\n\t\t<\/div>\n\n\t\t
\n\t\t\t
\n\t\t\t\tI want to (Investor)<\/label>
\n\t\t\t\t Invest<\/label>
\n\t\t\t\t Buy<\/label>
\n\t\t\t\t Sell<\/label>
\n\t\t\t<\/p>\n\t\t<\/div>\n\n\t\t
\n\t\t\t I give my consent to share my information to submit this form. For more details on our data practices, please refer to our Privacy Policy.<\/a><\/label>
\n\t\t\t\n\t\t\t I want the latest property updates, marketing emails, and newsletters from IQI Global by subscribing to IQI Global mailing list<\/label>
\n\t\t<\/div>\n\n\t\t\n\n\n
\n