Finance Minister II Datuk Seri Amir Hamzah Azizan
PUTRAJAYA: Malaysia's property market remained resilient in the first half of 2025 (1H 2025), with the value of transactions reaching RM107.68 billion.
In its Property Market Report 1H 2025, the Valuation and Property Services Department (JPPH) reported a total of 196,232 property transactions were recorded during the period, a decline of 1.3 per cent compared to the same period last year.
It said the value of transactions rose by 1.9 per cent to RM107.68 billion, reflecting continued market strength despite global uncertainties.
"The (property sector's) resilience was supported by government measures under Budget 2025, particularly the Step-Up Financing Scheme under the Housing Credit Guarantee Scheme (SJKP) for first-time homebuyers, tax relief on loan interest for residential properties priced between RM500,000 and RM750,000, and the reduction of the Overnight Policy Rate (OPR) to 2.75 per cent.
"These initiatives are designed to strengthen financial affordability and encourage homeownership, thereby sustaining demand in the residential sector," said Finance Minister II Datuk Seri Amir Hamzah Azizan when officiating the launch of the report and the Property Information System Malaysia (PRISM) 2.0 at Le Meridien Hotel here today.
Meanwhile, JPPH said the construction activity performance for residential and industrial properties remained strong with positive growth recorded across all stages of development.
The Malaysian House Price Index registered an annual growth of 0.7 per cent and stood at 227.3 points, with the average house price at RM490,376 per unit.
According to JPPH, new residential launches in 1H 2025 moderated to 23,380 units with a sales performance of 24.0 per cent, reflecting cautious sentiment among developers.
"The performance of unsold completed serviced apartment units improved in 1H 2025, with both volume and value declining by 8.6 per cent and 8.1 per cent respectively to 17,883 units valued at RM14.43 billion compared with 19,564 units valued at RM15.70 billion in 2H 2024.
"In contrast, the performance of unsold completed residential units exhibited an upward momentum, increasing to 26,911 units worth RM16.44 billion in 1H 2025, up by 16.3 per cent in volume and 17.9 per cent in value compared to 23,149 units worth RM13.94 billion in 2H 2024," it shared.
Meanwhile, occupancy performance for shopping complexes remained stable with an occupancy rate of 78.7 per cent in 1H 2025, compared to 78.8 per cent previously, while the performance of privately-owned purpose-built offices was also stable, with the occupancy rate stagnant at 71.7 per cent since 2H 2024.
"Bank Negara Malaysia has revised the national economic growth forecast for 2025 to between 4.0 and 4.8 per cent, in line with the moderate expansion of the property sector," JPPH said.
Outlook for 2H 2025
JPPH said the outlook for 2H 2025 remains cautiously optimistic amid global economic challenges, domestic demand fluctuations and external risks.
"The government's long-term focus under the 13th Malaysia Plan targets the delivery of one million affordable homes between 2026 and 2035.
"This initiative represents a strategic measure to encourage homeownership, particularly among low and middle-income households. Continuous support through programmes such as Residensi Rakyat and Rumah Mesra Rakyat, together with strategic infrastructure development, is expected to sustain robust construction activity".
Earlier, JPPH, through the National Property Information Centre (NAPIC), launched PRISM 2.0, an upgraded digital property information system leveraging big data analytics.
Initiated in 2023, the system aims to ensure comprehensive and transparent data collection, strengthening Malaysia's position as a reference point for policymakers, investors and developers.
The full 1H 2025 Property Market Report is available at the official NAPIC portal at https://napic2.jpph.gov.my. - Bernama
