Malaysia’s real estate landscape is undergoing a notable transformation, with suburban and secondary markets outpacing traditional urban centers in growth. While Kuala Lumpur has long dominated the country’s property scene, states like Selangor and Johor are now leading the charge, fueled by strategic investments, affordability, and infrastructure development. This shift signals a broader trend in post-pandemic recovery, where demand for housing is increasingly driven by accessibility and lifestyle rather than just location.
Selangor has emerged as the standout performer, accounting for 22% of Malaysia’s residential transactions in 2023, with a total value of MYR100.93 billion. Knight Frank’s research highlights the state’s dominance, attributing its success to a wave of new township developments and strong industrial growth under the First Selangor Plan. Projects like Kwasa Damansara and Elmina City exemplify this momentum, blending green spaces, modern amenities, and connectivity to attract buyers. Meanwhile, Johor follows closely, capturing 16.2% of transactions, as both states benefit from more balanced pricing compared to Kuala Lumpur’s premium market.
Affordability remains a key driver of demand, with Kuala Lumpur’s average home price of MYR770,543 far exceeding the national affordability threshold. In contrast, Selangor and Johor offer more accessible options, helping to reduce long-standing housing overhangs. Data from MIDF Research shows Selangor’s residential overhang dropping from 4,500 to 4,228 units in late 2023, reflecting sustained buyer interest. Government-backed initiatives, including subsidies and financing schemes, are further supporting this trend, particularly for landed properties and terraced homes in suburban areas.
Looking ahead, experts anticipate continued stability in Malaysia’s residential market, with Selangor and Johor maintaining their upward trajectory. Developers are expected to gradually reinvest in urban stratified housing, though confidence may hinge on sustained demand. As the country’s real estate sector rebalances post-pandemic, the focus on affordability, infrastructure, and livability is reshaping where Malaysians choose to call home.