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Overview of Malaysia Property Market Q1 2024


Written by Fazrina Fezili

Recap on Malaysian Property Market 2023

In 2023, Malaysia's economic growth normalized to 3.7%, after a strong growth 8.7% in the previous year, 2022. Despite a challenging global financial and economic environment, the Malaysian property market showed resilience, supported by several government initiatives under Budget 2023 that helped improve property market activity. Key initiatives included:

Stamp Duty Exemptions and Remissions:

  • Full Stamp Duty Exemption:
    • For first-time home buyers purchasing residential properties priced up to RM500,000, the full stamp duty exemption on instruments of transfer and loan agreements remains in effect until December 31, 2025.
    • Full stamp duty exemption up to RM1 million and a 50% remission for the remaining balance on property transfers between family members (e.g., from father to child or grandfather to grandson) were implemented to encourage intergenerational property transfers.
  • Increased Stamp Duty Remission:
    • The remission rate was increased from 50% to 75% for first-time home buyers of residential properties priced between RM500,000 and RM1 million, applicable for sale and purchase agreements executed until December 31, 2023.

Housing Allocations and Support:

  • Rural Housing:
    • RM460.2 million was allocated for building new homes and renovating existing ones in rural areas, aiming to improve living standards outside urban centers.
  • People’s Housing Programme:
    • RM389.5 million was dedicated to this program to provide housing for lower-income groups.
  • Affordable Homes:
    • RM358 million was earmarked for the construction of affordable homes under the Rumah Mesra Rakyat programme by Syarikat Perumahan Negara Berhad.
  • Projek Perumahan Awam Malaysia:
    • RM462 million was allocated for the construction of 23,000 houses under this public housing project.
  • Home Financing Guarantees:
    • Syarikat Jaminan Kredit Perumahan (SJKP) increased its guarantees up to RM5 billion to assist gig workers, including e-hailing drivers, in obtaining home financing up to RM500,000. This initiative aimed to support non-traditional workers in securing home loans.

Malaysia Monetary Policy

The Overnight Policy Rate (OPR) remained at 3.0% since May 2023, following a 0.25 basis point increase from 2.75% in November 2022. This monetary policy stance supports the economy while balancing inflation and growth prospects. The policy is designed to ensure sustainable economic growth amid price stability, with vigilance towards ongoing developments to inform future decisions on domestic inflation and growth outlook.

The initiatives under Budget 2023, combined with stable monetary policy, provided significant support to the market, ensuring continued activity and growth despite global uncertainties.

2024 Outlook for Malaysia’s Property Market

The Ministry of Finance (MoF) projects Malaysia's economy to grow moderately between 4% to 5% in 2024. The property market is expected to maintain its momentum in 2024, by several initiatives outlined under Budget 2024. Key measures include:

High-Tech Industrial Area in Kerian, Northern Perak:

Establishment of a high-tech industrial zone to expand the electrical and electronics (E&E) cluster ecosystem in the northern region, promoting industrial growth and development.

Halal Industry Master Plan 2030:

In alignment with the goal of the Halal Industry Master Plan 2030 to contribute 11% to GDP by 2030, nine financial institutions will offer special programs for SMEs in the halal industry. These programs provide access to special funds and capacity-building initiatives.

Stamp Duty for Non-Citizens:

A flat rate stamp duty of 4% will be imposed on the transfer of land ownership documents by non-citizens and foreign-owned companies, excluding individuals with permanent residency status in Malaysia. This measure seeks to balance foreign investment with domestic property ownership interests.

Housing Allocations and Support:

  • Reviving Abandoned Projects:
    • A special guarantee fund of RM1 billion has been allocated to incentivize reputable developers to revive identified abandoned projects, aiming to reduce wastage and repurpose existing resources efficiently.
  • Program Perumahan Rakyat (PPR):
    • RM546 million will be allocated to continue implementing 36 PPR projects, including a new project in Kluang, Johor. Additionally, 15 PPR projects are expected to be completed, potentially benefiting 5,100 new residents.
  • Program Rumah Mesra Rakyat:
    • RM358 million will be dedicated to constructing 3,500 housing units under 14 Program Rumah Mesra Rakyat initiatives, continuing efforts to provide affordable housing options.
  • Skim Jaminan Kredit Perumahan (SJKP):
    • Guarantees of up to RM10 billion under SJKP will be provided, benefiting approximately 40,000 borrowers. This scheme aims to assist more individuals in securing home financing.
  • Malaysia My Second Home (MM2H) Programme:
    • The requirements for the MM2H programme will be eased to attract more tourists and foreign investors to Malaysia, fostering greater economic activity and investment in the property sector.

Overview of Malaysia’s Property Market in Q1 2024

Property Transaction Q1 2024

Malaysia Q1 2024 Property Transaction Overview

The Malaysian property market experienced a  significant increase in activity during the first quarter of 2024, according to the National Property Information Centre (NAPIC), the market recorded over 104,297 transactions worth RM56.53 billion, marking a significant 34.3% increase in value compared to the same period in 2023.

Residential Sub-Sector:

Dominating the market with over 62,000 transactions valued at over RM25 billion, the residential sub-sector comprised nearly 60% of all property market activities. Housing priced at RM300,000 and below remained the most active segment, with 33,500 transactions, making up more than 50% of total residential transactions. This highlights the strong demand for affordable housing, likely bolstered by initiatives such as stamp duty exemptions and housing programs under Budget 2024.

Commercial Sub-Sector:

The commercial property sub-sector saw the highest growth rate at 33.4%, driven by the establishment of high-tech industrial areas and the expansion of the E&E cluster ecosystem, which attracted investment and increased demand for commercial properties.

Industrial Sub-Sector:

Industrial properties grew by 14.3%, supported by the push for industrial development and the revival of abandoned projects, making industrial zones more attractive for new and existing businesses.

Agricultural Sub-Sector:

Agricultural land transactions increased by 13.7%, reflecting ongoing investments in rural areas and the allocation of funds for building and renovating homes in these regions.

Development Land and Others:

This category saw a 10.7% growth, indicating a broader interest in land development, partly due to the easing of property transfer requirements and support for developers to revive stalled projects.

Construction Activities & New Residential launches 2024 Q1

Malaysia Q1 2024 Construction Activities Overview

Residential Construction

The residential construction sector experienced robust growth, with completed units increasing to 21,391, marking an almost 8% rise from the previous year. This reflects a strong demand and a high rate of project completions. However, the number of planned new developments saw a decline, dropping to 11,024 units. This decrease could suggest a cautious approach by developers, indicating a potential slowdown in future supply.

Serviced Apartments

The serviced apartment market also demonstrated positive momentum. The number of completed units rise to 5,494, indicating a steady increase in supply to meet growing demand. Both the initiation of new projects and planned developments experienced increase compared to Q1 2023,  suggesting that developers are optimistic about the future of this segment and are responding to market needs.

New Residential Launches

New residential launches grew by 19.8%, totaling 5,585 units compared to 4,661 units in Q1 2023. This significant increase points to a revitalized market with strong developer confidence. Johor led the way with 1,819 new units, followed by Selangor with 1,479 units, and Pahang with 692 units, highlighting these regions as key growth areas.

  • High-rise units: 30.3% of new launches
  • Landed properties: 69.7% of new launches

The sales performance data revealed a marked preference for landed properties, with 27.2% of these units sold compared to just 3.6% of high-rise units. This trend underscores a consumer inclination towards larger and more private living spaces.

Malaysia House Price Index Q1 2024 Overview

Malaysia House Price Index 2024 Q1

The Malaysian House Price Index edged up slightly by 0.5%, reaching 216.9 points. The average house price stood at RM467,997 per unit, indicating a stable pricing environment with gradual appreciation. While most states recorded moderate price growth between 0.5% and 4.6%, Kuala Lumpur, Penang, Perak, Malacca, and Sarawak saw a contraction in prices ranging from 0.2% to 2%.

  • Terraced housing: Maintained a positive growth with 1.8% growth, reflecting its enduring popularity among homebuyers.
  • Other housing types: Experienced marginal decreases, possibly due to shifts in buyer preferences or regional market adjustments.

Residential and Serviced Apartment Overhang Data for Q1 2024


Residential and Serviced Apartment Overhang 2024 Q1

The residential overhang, which refers to completed but unsold housing units, decreased to 24,208 units worth RM16.49 billion, down from 25,816 units valued at RM17.68 billion in Q4 2023. This reduction is a positive indicator, suggesting that the market is gradually absorbing excess inventory, which can lead to a healthier balance between supply and demand.

In contrast, the serviced apartment overhang increased by 5.2% to 21,913 units, with the total value rising by 9.7% to RM18.16 billion. A notable portion of this overhang (58.1%) consists of units priced between RM500,000 and RM1 million, highlighting a potential mismatch between supply and market demand in this price segment. Addressing this overhang will be crucial for market stability and developer profitability.

Occupancy: Purpose-Built Office & Shopping Complex

Purpose-Built Office & Shopping Complex 2024 Q1

The occupancy rates for privately-owned purpose-built offices showed a marginal improvement, rising to 72% from 71.9% in the previous quarter. This slight increase suggests a steady demand for office spaces, possibly driven by a gradual return to office environments and business expansions.

The performance of shopping complexes and other commercial spaces has not been detailed but is likely influenced by similar factors, including economic recovery, consumer behavior changes, and retail sector dynamics.


Overall, The Malaysia’s Property Market in Q1 2024 expected to resilience and cautious optimism. The increase in completed units and new residential launches reflects increase in market activity, while the slight rise in the House Price Index suggests stable market conditions. However, the decrease in planned new residential developments and the persistent overhang in the serviced apartment sector indicate areas where the market needs to adjust and respond to evolving demands. Continuous monitoring and strategic planning will be essential for maintaining a balanced and thriving property market in Malaysia.


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