Malaysia Property Market Q1 2025: What You Need to Know
PROPERTY GUIDE
Written by PropertyGenie
Malaysia Property Market Q1 2025: What Buyers, Investors & Homeowners Should Know
Is Malaysia’s property market heating up or cooling down? Q1 2025 has brought new challenges—and opportunities—for buyers, investors, and developers. Here's your complete breakdown, presented in an easy-to-digest, FAQ style that answers real questions property seekers ask.
📉 Did Malaysia's Property Transaction Volume Decline in Q1 2025?
Yes, but not drastically. Q1 2025 recorded 97,772 transactions worth RM51.42 billion, marking a year-on-year dip of 6.2% in volume and 8.9% in value. This slowdown primarily came from residential and commercial sales.
🏠 Are Housing Prices Still Stable in Malaysia?
Despite lower transaction activity, housing prices remained stable. The Malaysia House Price Index (MHPI) stood at 225.3, with the average property price around RM486,070—reflecting a 0.9% increase YoY.
🚧 How Much Did Construction and Launches Grow?
The residential construction sector saw strong growth. New housing completions rose by 30% to 9,329 units, while new project starts surged 32% to 28,344 units. Over 12,400 new homes were launched—more than double compared to the same quarter last year.
❓ What Is the Status of Unsold Homes in Malaysia?
There were 23,515 completed but unsold residential units in Q1 2025, worth around RM15.0 billion. While this was slightly higher than the previous quarter (+1.6%), it's actually a 2.9% decrease YoY. Johor’s serviced apartment overhang dropped by 5.6%, indicating improved demand in the south.
📊 Q1 2025 Property Sector Breakdown (Table)
| Sector | Q1 2024 Transactions | Q1 2025 Transactions | Q1 2024 Value (RM b) | Q1 2025 Value (RM b) |
|---|---|---|---|---|
| Residential | ~62,000 | ~59,000 | 25.0 | 24.0 |
| Commercial | ~20,000 | ~19,000 | 15.0 | 14.2 |
| Industrial | ~12,000 | ~12,036 | 4.0 | 4.01 |
🏙️ Which States in Malaysia Are Leading Property Development?
Johor led Q1 with over 3,000 new units launched, powered by Forest City and JS-SEZ developments. Selangor followed with 2,100+ new launches. Negeri Sembilan saw the third-highest launches, driven by spillover from Klang Valley. Meanwhile, Penang, Sabah, and Sarawak remained stable.
🏢 What’s Happening in the Commercial Property Segment?
While transactions dipped, occupancy in shopping complexes rose from 78.8% to 79.0%, signaling healthier demand. Retail space in strategic locations continues to attract interest, although rental prices remain flat.
🏭 How Did Industrial Properties Perform?
One of the best-performing segments. Industrial completions grew to 356 units, and new starts rose to 1,188. Johor and Penang remain hot zones for warehouse and logistics investments.
📌 What Are the Takeaways from Q1 2025?
- 📈 Residential supply growth is strong, with launches doubling YoY.
- 📉 Sales value fell slightly—but construction compensated with volume.
- 🏠 House prices remained stable, with mild appreciation.
- 📦 Industrial sector outperformed thanks to e-commerce growth.
- 📍 Johor and Klang Valley are still hotspots for both demand and development.
🔮 What’s the Outlook for Malaysia’s Property Market?
Experts remain cautiously optimistic. The MADANI economic initiatives, tax benefits for homebuyers, and strategic zones like JS-SEZ should support steady demand. However, inflation and interest rate hikes remain as key risks in the quarters ahead.
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