Summary of Henry Butcher Malaysia Perspective - Malaysian Property Outlook 2025
Key Highlights The Malaysian property market continued to register a positive performance in 2024, chalking up increases in both volume as well as value of transactions although some states recorded declines in either volume or value of transactions or both. The residential sub-sector recorded just single digit increases in volume and value of transactions, signaling a return to normalisation in growth after the slowdown during the pandemic hit years whilst the commercial sub-sector enjoyed double digit growth in both volume as well as value of transactions, reflecting a healthy interest especially in shophouses. The volume of transactions for the industrial sub-sector recorded single digit growth whilst value wise it went up by double digit, an indication that higher value industrial properties were the focus of interest. Supported by a steady GDP growth projected by the government at between 4.5% and 5.5% in 2025 and barring any adverse global events which can affect Malaysia’s economic wellbeing, we are confident that the resilient Malaysian property market will continue to experience positive growth in 2025. The country is seeing increasing digitalisation of the property industry with expanded use of proptech, social media, virtual showhouse tours and other digital technologies to improve operational efficiency, service quality, marketing reach and time and cost savings. Infrastructural enhancements like LRT, MRT and highways will influence property development activities and trends. Increased FDIs and DDIs including investments by large multinationals in data centres and chip design and manufacturing activities will drive the industrial sub sector whilst VMY 2026 promotional programmes will boost the hospitality and retail sectors. Overview of the Malaysian property market in 2024 For Q1-Q3 2024, the overall volume of transactions climbed 6% compared to the same period in 2023 whilst the value of transactions increased by 14%. This compares favourably with the stagnant growth in volume and single digit increase in value recorded in 2023. Increase / Decrease in Volume and Value of Overall Transactions Q1-Q3 2024 vs 2023 Volume
Value
Kuala Lumpur
10.3
↑
41.9
↑
Selangor
6.4
↑
18.6
↑
Johor
7.4
↑
22.9
↑
Pulau Pinang
-0.8
↓
-12.7
↓
Perak
10.7
↑
14.5
↑
Negeri Sembilan
-13.2
↓
17.3
↑
Melaka
19.8
↑
16.3
↑
Kedah
2.8
↑
-1.6
↓
Pahang
9.3
↑
15.3
↑
Terengganu
-6.1
↓
-0.9
↓
Kelantan
95.0
↑
52.6
↑
Sabah
-9.3
↓
-2.4
↓
Sarawak
-12.5
↓
-4.9
↓
Malaysia
6.2
↑
14.3
↑