Malaysia’s real estate sector experienced a mixed performance in early 2025, with declining transaction volumes offset by promising indicators in new developments. Official figures reveal property deals dropped 6.2% year-on-year to 97,772 transactions, while total transaction value fell nearly 9% to RM51.42 billion during the first quarter.
Market analysts point to several silver linings despite these downward trends. Residential property launches surged dramatically, more than doubling to 12,498 units compared to the same period in 2024. However, absorption rates remained sluggish at just 10.8%, signaling cautious buyer sentiment amid economic uncertainties.
The overhang situation showed modest improvements, with residential unsold inventory rising slightly to 23,515 units worth RM15 billion. Serviced apartments fared better, witnessing a 6.7% reduction in overhang volume to 18,246 units. Johor Bahru’s serviced apartment segment demonstrated particular resilience, with a 5.6% quarterly decline in unsold stock.
Authorities remain cautiously optimistic about the market’s underlying strength. Construction sector activity and new project launches continue to provide stability, though industry players are advised to monitor global economic shifts closely. Meanwhile, retail spaces saw marginal occupancy gains, with shopping complex rates inching up to 79%—a sign of gradual recovery in commercial real estate.