Malaysia Industrial Property Market 2025: Transaction Value Jumps 21.3%

While residential property still accounts for the bulk of Malaysia's property transactions, industrial real estate recorded the strongest transaction-value growth among the major sub-sectors in 2025. According to NAPIC's Property Market Report 2025, industrial property transactions rose to 8,910 deals worth RM33.80 billion, up 1.4% in volume and 21.3% in value compared with 2024's 8,783 transactions worth RM27.86 billion.

What's behind the surge

NAPIC attributes the growth to sustained demand in high-value industrial segments, including logistics, manufacturing and data-related facilities, alongside growing investor confidence in strategic industrial locations. The report links this momentum to the New Industrial Master Plan 2030 (NIMP 2030) and the policy direction of the Thirteenth Malaysia Plan.

The fact that transaction volume grew only 1.4% while value jumped 21.3% is the key signal here: buyers were not transacting much more often, but the average value per transaction increased. This points to larger or higher-value deals rather than a broad volume boom, although national aggregates alone do not reveal the mix or performance of every individual asset.

Where the activity is concentrated

By property type, terraced factories and warehouse units led demand, making up 33.3% of all industrial transactions. Vacant industrial plots followed at 27.1%, and semi-detached factories accounted for another 21.8%. Geographically, Selangor dominated with 35.7% of all industrial transactions, followed by Johor at 18.1% — together capturing more than half the national total. This lines up with both states' established manufacturing and logistics corridors, and Johor's growing data centre and cross-border logistics activity tied to its economic ties with Singapore.

A tight, well-absorbed market — for now

One of the clearest signs of health in the industrial segment is how little unsold stock is sitting on the market. Only 722 unsold completed industrial units were recorded in 2025, worth RM789.74 million — a marginal increase of 2.4% in volume and 12.8% in value versus 2024. To put that in perspective, residential unsold completed stock alone stood at over 30,000 units in the same period; industrial overhang is a tiny fraction of that scale.

There are a couple of numbers worth watching, though. Unsold units currently under construction rose by 27.1% year-on-year, meaning more industrial supply is in the pipeline than is currently completed and unsold — worth monitoring as that stock comes online. On the other hand, unsold units that haven't even started construction fell sharply, down 34.7% to 132 units (from 202 in 2024), suggesting developers are being more disciplined about greenlighting new industrial projects only when demand is reasonably assured. Sarawak recorded the highest share of unsold completed industrial stock nationally, at close to 35% of the total.

What this means for investors and developers

Industrial property in 2025 showed strong transaction-value growth alongside comparatively low completed unsold stock. That does not make every industrial asset attractive: investors still need to test tenant demand, lease terms, specifications, access, zoning and entry price. For developers and landowners, the calculation is not just about today's asking price; it is about whether a site's location, zoning and access align with actual logistics and manufacturing demand.

For a durable investment framework rather than a single-year snapshot, read Industrial Property Investment in Malaysia: Factories, Warehouses and Deal Checks and the complete industrial buying guide. If you're evaluating industrial or logistics land, PropPlace.my's Land Feasibility tool can test gross development value, construction cost, residual land value and sensitivity before you commit capital.

Source: [NAPIC Property Market Report 2025](https://napic.jpph.gov.my/storage/app/media/3-penerbitan/Shahrul/Bahagian%20Pasaran%20Harta%20Tanah/Laporan%20Pasaran%20Harta%20Separuh%20Tahun%20dan%20Jadual/Q4%202025/Laporan%20Pasaran%20Harta%202025.pdf). Reviewed 22 July 2026.