PUTRAJAYA: The property market remained resilient in the first half of financial year 2025 (1H25), with the value of transactions reaching RM107.68bil.
In Property Market Report 1H25, 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% compared to the same period last year.
It said the value of transactions rose by 1.9% to RM107.68bil, 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 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 to 2.75%.
“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 yesterday.
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% and stood at 227.3 points, with the average house price at RM490,376 per unit.
New residential launches in 1H25 moderated to 23,380 units with a sales performance of 24.0%, reflecting cautious sentiment among developers.
“The performance of unsold completed serviced apartment units improved in 1H25, with both volume and value declining by 8.6% and 8.1% respectively to 17,883 units valued at RM14.43bil compared with 19,564 units valued at RM15.70bil in 2H24.
“In contrast, the performance of unsold completed residential units exhibited an upward momentum, increasing to 26,911 units worth RM16.44bil in 1H25, up by 16.3% in volume and 17.9% in value compared to 23,149 units worth RM13.94bil in 2H24,” it shared.
Meanwhile, occupancy performance for shopping complexes remained stable with an occupancy rate of 78.7% in 1H25, compared to 78.8% previously, while the performance of privately-owned purpose-built offices was also stable, with the occupancy rate stagnant at 71.7% since 2H24.
“Bank Negara Malaysia has revised the national economic growth forecast for 2025 to between 4.0% and 4.8%, in line with the moderate expansion of the property sector,” JPPH said.
JPPH said the outlook for 2H25 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.” — Bernama
