KUALA LUMPUR: The property market registered moderate growth momentum in 2025 as it continued to navigate global economic uncertainties with resilience.
According to the Valuation and Property Services Department’s (JPPH) property market report for the first half of 2025 (1H25), the property market had softened as transaction volume fell while housing developers withheld launches amid modest sales and a rising overhang situation.
Volume slipped 1.3% to 196,232 transactions in 1H25 compared with the same period in 2024.
Transaction value, meanwhile, rose 1.9% year-on-year to RM107.68bil.
Meanwhile, the Real Estate and Housing Developers’ Association (Rehda) expects stable, sustainable growth for the property sector in 2026, with a landscape that supports genuine demand while reducing speculative activity.
“Johor is poised to benefit from heightened connectivity via the Johor Baru-Singapore Rapid Transit System, the Johor-Singapore Special Economic Zone as well as the elevated Autonomous Rapid Transit.
“Penang will see transit-oriented growth with the Light Rail Transit Laluan Mutiara and Juru-Sungai Dua elevated highway, while nationwide projects like the East Coast Rail Link and Mass Rapid Transit 3 are expected to catalyse demand,” it said.
Rehda remained cautiously optimistic about the property sector although the year might introduce uncertainties for developers.
For instance, it said stamp duty for foreign residential ownership would rise from 4% to 8%, potentially cooling speculative demand.
“Rehda foresees stronger emphasis on environmental, social and governance) compliance and sustainable development, alongside urban renewal initiatives such as redevelopment of housing over 50 years old, particularly in Selangor,” it said.
According to JPPH, the property market is expected to stay positive as industry players anticipate genuine demand to drive growth.
“With Visit Malaysia Year 2026 and enhancements to the Malaysia My Second Home programme, the demand for premium residential properties and serviced apartments in key cities is projected to rise,” it said.
Government support remains crucial particularly with the affordable housing push, it added. — Bernama
