KUALA LUMPUR: Malaysia's real estate market continues to receive demand from foreign investors in 2026 even with the stronger ringgit, underpinned by affordable property prices within the Southeast Asia region.
JLL managing director Jamie Tan said while the strengthening of the ringgit over the past year has had some impact on foreign investment sentiment, it has not significantly dampened interest in the nation's real estate market.
"We have a lot of investors still coming in, especially from Singapore and China. They are very much interested in our markets because, if you look at the Southeast Asian region, Malaysia is still one of the most affordable residential markets," he said after the company's first quarter (1Q) 2026 press conference here today.
"Compared to Bangkok and Jakarta, Kuala Lumpur is still very affordable in comparison," he added, noting that areas such as the Klang Valley and Johor Bahru continue to attract investor interest.
Tan said Johor Bahru has recorded growth of about 25 per cent, reflecting strong momentum as Johor continues to develop, though it started from a relatively low base compared with the Klang Valley, where growth began much earlier.
He noted that the state still has ample room to expand, and attractive pricing combined with favourable rental yields continue to make Malaysia appealing to foreign investors.
Meanwhile, Tan noted that Malaysia's real estate performance for 2026 is expected to follow the trends seen in 2025, with industrial logistics, data centres and residential properties within transit-oriented developments (TOD) projected to remain the key outperforming segments.
He said the performance of real estate continues to be highly location-dependent, influenced by factors such as local market dynamics, demographics, accessibility and connectivity.
JLL Malaysia head of office leasing advisory Quiny Lee said occupiers are expected to continue prioritising a 'flight to quality', focusing on modern Grade A offices with strong environmental, social and governance (ESG) credentials, green certifications and comprehensive amenities in 2026.
She said that with limited availability in the city centre, tenants are increasingly considering fringe and decentralised locations, provided the buildings offer modern amenities, collaborative spaces and strong sustainability features.
"In terms of the stocks that are coming into the market for 2026, we have KL Midtown, which is located around the KL Metropolis area.
"We also have the UOA Dua Tower (Tower B) and Menara Golden Eagle which will be completed this year," she said at the press conference.
She added that beyond these projects, the supply pipeline remains constrained with no significant new office completions expected in 2028, and the next wave only anticipated in 2029.
Meanwhile, owners of older office buildings (Grade B and C) are proactively enhancing their assets through refurbishment, additional amenities and ESG upgrades to remain competitive as occupiers place growing emphasis on wellness features, smart technology and environmentally certified buildings. - Bernama
