NILAI Research

Malaysia Property Market: State of Play 2025 and H1 2026

A full-market brief covering transaction volume and value, house prices, residential supply, industrial momentum, and regional divergence across all five regions, based on NAPIC, BNM, and DOSM official data.

Latest data: H1 2026; 2026; H2 2025; H1 2025; H2 2024; H2 2019; H1 2019; H2 2018; H1 2018Updated: 21 September 2026Next update: when NAPIC publishes its next half-year report

Malaysia's property market turned a corner in 2024, hitting a decade-high in both volume and value, but 2025 brought a deliberate cooling: total deal value kept growing while transaction counts slipped, and early 2026 data show the softer pace is holding.

2024 was the breakout year: 420,545 transactions worth RM232.30 billion, the highest on record in a decade, driven by broad-based sub-sector strength and a STAMPS digitisation boost in Kelantan that more than doubled that state's recorded volume overnight.
2025 saw a deliberate moderation: volume fell 1% to 416,413 transactions, but total value rose 4.1% to RM241.87 billion, suggesting the market is transacting at higher per-deal prices even as deal counts ease.
Industrial property is the standout sector: industrial transaction value jumped 21.3% in 2025 and a further 3.8% in H1 2026, pulled by data centre build-out and E&E demand in Selangor and Johor.
The North (Penang, Perak, Kedah, Perlis) and East Coast (Pahang, Terengganu) both contracted in 2025 in volume terms, while Kelantan, Johor, and Sabah bucked the trend with continued growth.
House prices are still rising but slowing: the national MHPI stood at 234.7 points (RM506,317 average) in preliminary Q2 2026 data, with annual growth compressing to 0.9%, down from 2.6% growth in full-year 2025.

Key Numbers

Total property transactions

420,545deals

Malaysia · 2024

Total transaction value

RM241.87 billion

Malaysia · 2025

Year-on-year change in total transaction value

+4.1%

Malaysia · 2025 vs 2024

MHPI annual house price growth

0.9percent

Malaysia · Q2 2026P

MHPI average house price (national)

RM506,317

Malaysia · Q2 2026P

Residential housing loans outstanding

921.7RM billion

Malaysia · July 2026

Regional Property Market Performance, 2025 vs 2024

Region	States	2025 Volume	YoY Volume	2025 Value (RM bil)	YoY Value
Central / National (Residential)	All Malaysia	256,512	-1.5%	108.27	+1.3%
Northern	Penang, Perak, Kedah, Perlis	104,689	-2.8%	37.36	+2.3%
Southern (Residential)	Johor, Melaka, N. Sembilan	–	Johor +16.6% share	–	Johor MHPI +6.9%
East Coast	Pahang, Terengganu, Kelantan	66,997	-2.4%	12.96	-2.3%
East Malaysia (Residential)	Sabah, Sarawak, WP Labuan	17,376	+1.3%	6.51	mixed

MHPI Average House Price by State, Q2 2026P vs Q1 2022

State	Q2 2026P Avg Price	Q2 2026P MHPI Index	Q1 2022 Avg Price	Change since Q1 2022
All Malaysia	RM506,317	234.7	RM444,230	+14.0%
Kuala Lumpur	RM825,282	207.8	RM762,072	+8.3%
Selangor	RM561,187	231.4	RM509,859	+10.1%
Johor	RM489,881	313.9	RM378,680	+29.4%
Pulau Pinang	RM503,388	224.5	RM434,291	+15.9%

What to Watch

Industrial land and factory supply in Selangor and Johor: data centre and E&E demand is absorbing stock fast, and any moderation in foreign direct investment could leave a pipeline of committed supply without matching demand.
Residential starts fell sharply to 27,765 units in H1 2026 from 43,556 in H1 2025, even as planned supply rose; the gap between planning activity and on-the-ground starts is worth tracking as a leading indicator of future completions.
OPR is unchanged at 2.75% and residential loans outstanding crossed RM921 billion in July 2026, a steady climb from RM845 billion at end-2024; credit expansion is still the key demand-support mechanism, making any rate or policy shift high-impact.
The Kelantan transaction surge of 2024 was largely a STAMPS digitisation artifact; stripping that out, the East Coast remains the market region most exposed to affordability constraints, given median household incomes below RM5,000 in Kelantan and Pahang.

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Sources

NAPIC, Bank Negara Malaysia, DOSM, market news

Some breakdowns (4) weren't available in this edition due to limited source coverage.