The Malaysian real estate market experienced a slight contraction in transaction volume during the first half of 2025, though overall transaction value saw modest growth. According to the National Property Information Centre (Napic), property transactions declined by 1.3% to 196,232 units compared to the same period in 2024, while total transaction value increased by 1.9% to RM107.68 billion. This mixed performance reflects cautious market sentiment amid ongoing economic adjustments.
Residential properties continued to lead the market with 120,307 transactions valued at RM49.37 billion, followed by the commercial sector which recorded 21,260 transactions worth RM24.45 billion. Other segments included industrial properties with 4,148 transactions, development land and other properties with 12,234 transactions, and agricultural land registering 37,283 transactions. Despite the overall transaction growth in value, new residential launches dropped significantly by nearly 46%, with only 24% of units sold.
The overhang situation for completed residential units worsened, increasing by 16.3% in volume and 17.9% in value compared to the previous year. In contrast, the serviced apartment segment showed improvement, with unsold units decreasing by 8.6% and their value dropping by 8.1%. The average house price saw a slight annual increase of 0.7%, reaching RM490,376 per unit, indicating relative price stability despite market challenges.
Finance Minister II Datuk Seri Amir Hamzah Azizan expressed confidence in the market’s resilience, emphasizing continued government support to help navigate global economic pressures. He highlighted that ongoing incentives and policy commitments are designed to benefit consumers and stimulate stronger real estate performance in the coming months. The government remains optimistic about the sector’s ability to sustain recovery momentum.