Malaysia’s real estate sector is expected to experience modest performance this year, with industry analysts predicting stable rather than dramatic growth. Market observers suggest this steady trajectory reflects a maturing property landscape rather than stagnation, emphasizing sustainability over rapid expansion.
According to property experts, transaction volumes and values have shown slight declines in early 2025, but underlying demand remains resilient. Data from the National Property Information Centre indicates a 6.2% drop in transaction volume and an 8.9% decrease in value year-on-year for the first quarter. Despite these figures, industry leaders note that affordable housing segments continue to attract buyers, particularly properties priced below RM500,000.
Economic factors such as controlled inflation and recent interest rate cuts by Bank Negara are expected to support the market. The central bank reduced the overnight policy rate to 2.75%, potentially easing housing loan repayments for buyers. Additionally, approved property loans saw a 5% monthly increase in May, suggesting sustained financing availability. Analysts anticipate this trend may continue, bolstering market stability in the coming months.
While geopolitical tensions and global economic uncertainties could introduce risks later in the year, current sentiment remains cautiously optimistic. Developers are adapting to shifting buyer preferences, with smaller built-up areas gaining acceptance. Experts agree that unless unforeseen economic shocks occur, Malaysia’s property market is likely to maintain its steady course through 2025.