Malaysia Property Market Q3 2025 Performance

Malaysia’s real estate sector recorded a mixed performance in Q3 2025, with overall transaction value rising to RM64.4 billion, a 12.5% year-on-year increase. This growth is driven by higher price levels in key urban centres and stronger activity in commercial and industrial segments.
However, overall transaction volume dropped 3.5%, reflecting cautious buyer sentiment due to higher interest rates and general economic uncertainty. Buyers are becoming more selective, prioritising location, connectivity, and project quality.

Key factors supporting transaction value growth include rising prices in high-demand areas such as Klang Valley, Johor Bahru and Penang; strong demand for logistics and industrial properties; and continued momentum from major infrastructure projects like MRT3, RTS Link, and key highway upgrades.

At the same time, Malaysia experienced a major contraction in new housing supply in 2025, with nationwide launches falling more than 40% year-on-year. Developers are taking a more conservative approach in response to high construction costs, affordability challenges, and reduced loan approval rates.
Unsold residential units have increased, especially in areas where supply exceeds demand or where pricing does not match local income levels.

Developers are adapting by launching smaller units, focusing on mixed-use developments, and prioritising sites with strong transit connectivity such as MRT, LRT, BRT and RTS corridors. Despite challenges, well-positioned projects in KL fringe areas, Penang Island and Johor’s CIQ–RTS corridor continue to show strong take-up rates and rental performance.

Johor remains one of the strongest-performing real estate markets in 2025, driven by Singapore-based buyers, hybrid workers, cross-border commuters and investors seeking high rental yields. The CIQ–RTS–JBCC corridor shows especially strong rental demand ahead of the RTS Link opening in 2026.
Units near Bukit Chagar and JBCC are experiencing higher occupancy and rising rental rates, with many investors positioning themselves early for cross-border growth.

The Johor–Singapore Special Economic Zone (JS-SEZ) is further boosting business activity, increasing the number of professionals, companies and tenants relocating to Johor Bahru. This has strengthened demand for serviced apartments and well-connected urban homes.

Looking ahead to 2026, the Malaysian property market is expected to remain stable with regional differences becoming more pronounced. Positive drivers include the opening of the RTS Link, major urban renewal projects, industrial sector expansion, and improving consumer sentiment.
Challenges include a persistently high interest-rate environment and ongoing affordability concerns, especially for first-time buyers.

Overall, Malaysia is entering a phase of steady, structural recovery. Transaction value is increasing, new supply is being rationalised, and developers are focusing on quality and location. Johor, particularly the CIQ–RTS–JBCC corridor, continues to lead national growth and is expected to enter a strong expansion cycle as 2026 approaches.