The Malaysian real estate sector demonstrated mixed performance during the initial half of 2025, with transaction volumes experiencing a slight contraction despite an increase in overall value. According to the National Property Information Centre, property transactions declined by 1.3% to 196,232 deals, while the total transaction value grew by 1.9% to RM107.68 billion. This divergence highlights a market adjusting to current economic conditions, with residential properties continuing to lead sector activity.
Residential real estate remained the dominant segment, accounting for 120,307 transactions valued at RM49.37 billion. The commercial property market followed with 21,260 transactions worth RM24.45 billion, while industrial properties recorded 4,148 transactions totaling RM14.25 billion. Development land and agricultural property transactions contributed significantly to the overall market figures, demonstrating the diverse composition of Malaysia’s property landscape.
Market challenges were evident in the residential sector, where new project launches plummeted by nearly 46% to 23,380 units. The sales performance for these new launches remained modest at 24%, contributing to a worsening overhang situation. Completed but unsold residential units increased by 16.3% in volume to 26,911 units, with their value rising 17.9% to RM16.44 billion, indicating persistent inventory absorption issues.
Despite these challenges, the serviced apartment segment showed improvement with unsold units decreasing by 8.6% to 17,883 properties. The average house price maintained stability at RM490,376 per unit, supported by a 0.7% annual growth in the national house price index. Finance Minister II Datuk Seri Amir Hamzah Azizan expressed confidence that government initiatives would help the market navigate global economic uncertainties and strengthen its recovery trajectory in the coming months.