The Malaysian property market remains resilient in the first half of 2025, even as new project launches and transaction volumes show signs of moderation.

According to recent reports from REHDA Malaysia and The Malaysian Reserve, total property transactions reached RM107.68 billion in 1H2025, reflecting strong underlying demand despite market adjustments.

However, new housing launches dropped by 26% compared to the previous year, with only 12,938 units introduced between January and June 2025. Terraced houses remain the top choice among Malaysians, while developers are taking a more cautious approach due to higher construction costs and financing challenges.

The commercial property segment continues to attract premium investors, particularly high-net-worth individuals and institutions seeking Grade-A office spaces and established industrial properties.

In key areas around the Klang Valley, residential prices and rental rates are gradually climbing. For example, Bandar Sunway recorded a year-on-year price increase of about 5.3%, reaching an average of RM900,000, with rental yields around 4.8%.

Latest Property Market Forecast

Malaysia’s property market continues to show stable growth supported by a favourable interest rate environment and steady demand from buyers.

While new project launches have slowed, transaction volumes remain healthy — reflecting sustained confidence among homebuyers and investors.

Key growth drivers include;

Potential OPR adjustments by Bank Negara Malaysia, which may further support housing loans and investment activities.

Strong demand for industrial and commercial assets, especially in logistics and warehousing sectors

Premium residential properties near urban hubs continue to attract both local and foreign buyers.

2. Short-Term Forecast (6–12 months)

Prices and transactions are expected to remain stable, with slight increases in high-demand areas.

Developers are cautious, leading to limited new supply, which helps maintain price stability.

Buyers have better negotiation leverage on slow-moving projects and older listings.

3. Medium-Term Forecast (1–3 years)

The market will likely diverge into two segments:

Premium & strategic locations will perform strongly with consistent capital appreciation.

Mid-range & affordable housing may face slower recovery due to tighter lending conditions and unsold inventory.

Industrial and commercial sectors are expected to outperform, driven by logistics demand and investor interest in Grade-A assets.

4. Risks to Watch

Monetary policy changes — Any increase in global or local interest rates could dampen loan approvals.

Rising construction costs — May lead to project delays or higher selling prices.

Financing accessibility — Stricter lending standards may affect demand in the affordable housing segment.

What This Means for You?

For Property Owners:

Use professional marketing and visual content (high-quality photos, videos, or virtual tours).

Adopt a realistic pricing strategy — competitive pricing attracts serious buyers faster.

For Buyers and Investors:

Focus on locations with stable rental demand — near schools, industrial hubs, and major highways.

Consider industrial and commercial properties for higher long-term yield and capital growth.

Malaysia Property Market Update, Late 2025

In the first half of 2025, total property transactions in Malaysia slipped by approximately 1.3 % to about 196,232 units, though total transaction value edged up by around 1.9 % to RM107.68 billion. 

New residential launches fell sharply — about a 26 % drop, with only 12,938 units launched in 1H 2025 compared to the latter half of 2024. 

Oversupply remains a concern, especially in high-rise and strata units. For example, completed unsold units rose by about 16.3 %, with heavy overhang in apartments and condos. 

Regional divergence: Locations like Johor and Penang are showing stronger momentum, while Kuala Lumpur High-rise market remains under pressure. 

Price performance: Some landed residential segments (especially terraces) are showing resilience with modest growth in key locations. Rental yields remain moderate. 

Implications for Stakeholders:

• For Sellers/Owners: With fewer new launches, there is less competition in certain segments. Quality listings in good locations with strong marketing have better chance of standing out.

• For Buyers/Investors: Slowed launches and stable value means there are opportunities to negotiate. But buyers must be selective: focus on areas with strong infrastructure/access and avoid segments with high overhang risk.

Outlook (Next 12-18 Months); 

• The market is likely to remain cautious but stable: prices may rise modestly in selected zones but broad-based booms are unlikely. 

• Supply side may remain constrained for quality landed stock — this could support price stability in good locations.

• The affordability issue and loan financing hurdles may dampen recovery in the mid-market and strata segments.

• Industrial and development-land segments are becoming stronger growth areas compared to mass residential.

Bank Negara Malaysia Keeps OPR Unchanged at 2.75%, Signals Confidence in Economic Stability

📅 Kuala Lumpur, 6 November 2025

Bank Negara Malaysia (BNM) has decided to maintain the Overnight Policy Rate (OPR) at 2.75%, following its latest Monetary Policy Committee (MPC) meeting today. The central bank stated that the current monetary policy stance remains “appropriate and supportive” of sustainable economic growth while keeping inflation manageable.

According to BNM, Malaysia’s economy continues to show resilience, supported by stable domestic demand, ongoing infrastructure projects, and a gradual recovery in the external sector. The bank noted that private consumption remains strong, driven by steady employment and income growth.

“The MPC considers the current OPR level to be consistent with the outlook for growth and inflation,” the statement said. “At this level, the stance of monetary policy remains supportive of the economy.”

While some analysts had expected a possible rate cut due to moderating inflation, BNM emphasized that there is no immediate need to adjust the policy rate, as economic indicators continue to show stability.

On inflation, the bank projects that headline and core inflation will remain moderate, supported by government subsidies and stable commodity prices.

The decision also had a positive impact on the Malaysian ringgit, which strengthened slightly against the US dollar following the announcement, reflecting improved investor confidence in Malaysia’s monetary stability.

Economists believe BNM’s cautious stance reflects a balancing act between maintaining growth momentum and safeguarding financial stability amid global uncertainties.

For homebuyers and investors, the unchanged OPR means loan interest rates will remain stable in the short term, offering predictability for property financing and long-term investment planning.

BNM concluded that it will continue to closely monitor global developments and their impact on the domestic economy before making any future adjustments to the policy rate.