Malaysia’s property market is showing signs of revitalization in early 2025, with residential construction leading the charge. The first quarter saw a remarkable 30.2% jump in completed housing units, reaching 9,329 compared to the same period last year. Housing starts also surged by 32.5%, signaling strong developer confidence despite a dip in planned new developments.
The residential sector witnessed particularly strong activity in new launches, which more than doubled to 12,498 units. However, overall property transactions saw a modest decline of 6.2% in volume and 8.9% in value, suggesting a market in transition. Government-backed initiatives like the Program Residensi Rakyat (PRR) and strategic infrastructure projects are playing a crucial role in sustaining momentum.
Key economic zones, including the Johor-Singapore Special Economic Zone (JS-SEZ) and Forest City’s Special Financial Zone, are beginning to make an impact. These developments are expected to attract long-term investment and stabilize market growth. Meanwhile, the residential overhang saw a slight increase, with 23,515 unsold units valued at RM15 billion, indicating ongoing challenges in balancing supply and demand.
Shopping complexes showed marginal improvement in occupancy rates, rising to 79%, while the Malaysian House Price Index (MHPI) recorded modest annual growth of 0.9%. Analysts remain optimistic, citing sustained construction activity and new residential launches as key drivers. With continued government support and strategic incentives, Malaysia’s property market appears poised for steady expansion in the coming months.