Malaysia Property Market Report 2025: Transactions, Prices and Key Trends

Malaysia's economy grew 5.2% in 2025, supported by firm domestic demand and resilient exports. Bank Negara Malaysia reduced the Overnight Policy Rate from 3.00% to 2.75% in July 2025, where it remained through year-end. Those conditions, together with housing-focused Budget 2025 measures, formed the backdrop for a property market that stayed resilient despite global uncertainty.

According to the National Property Information Centre's (NAPIC) Property Market Report 2025, Malaysia recorded 416,413 property transactions worth RM241.87 billion last year. Volume slipped by a modest 1% from 2024's 420,545 transactions, but total value rose by 4.1% from RM232.30 billion — meaning fewer deals were done, but at meaningfully higher combined value. It's a pattern seen across many of Malaysia's sub-markets in 2025: cautious, more selective buying, but healthier price points.

Residential still dominates, but industrial is the story of the year

Residential property remains the backbone of the market, accounting for 61.6% of all transaction volume and 44.8% of total value. Commercial property took 11.2% of volume and 24.3% of value, while industrial property — the standout performer of 2025 — made up just 2.1% of volume but punched well above its weight at 14.0% of value. Agricultural land accounted for 18.4% of volume and 7.3% of value, and development land and other property types made up the remaining 6.7% of volume and 9.6% of value.

Look at growth rates rather than shares, and industrial property is the clear headline: transaction value jumped 21.3% year-on-year, far outpacing every other sub-sector, while volume rose a more modest 1.4%. Development land and other property followed with 17.2% value growth. Residential value grew a slower 1.3% (volume actually fell 1.5%), and commercial value rose 1.1% (volume up 1.4%). Agriculture was the one sub-sector to contract in both volume (-2.7%) and value.

The takeaway: buyers were still concentrated in homes, but industrial and logistics real estate recorded the strongest transaction-value growth in 2025. NAPIC linked the segment's momentum to the New Industrial Master Plan 2030 (NIMP 2030) and the policy direction of the Thirteenth Malaysia Plan.

What's driving the market: Budget 2025

NAPIC points to a cluster of Budget 2025 initiatives as catalysts for sustained property activity through the year, including:

RM405 million allocated to continue 48 Program Residensi Rakyat (PRR) projects, including two new PRR developments in Port Dickson, Negeri Sembilan, and Seberang Perai Tengah, Pulau Pinang. RM452 million to continue 14 Rumah Mesra Rakyat (RMR) projects, adding 5,410 new housing units. Government guarantees of up to RM10 billion under the Housing Credit Guarantee Scheme (SJKP), benefiting 20,000 home buyers. Individual income tax relief on housing loan interest — up to RM7,000 for homes priced up to RM500,000, and up to RM5,000 for homes priced between RM500,000 and RM750,000 — aimed at first-time buyers. The Step-Up Financing Scheme under SJKP, a further RM5 billion government guarantee specifically for young, first-time buyers, offering lower instalments for the first five years. RM200 million channelled through UDA for affordable housing built on waqf land. Forest City's approval as a duty-free island, alongside a Special Financial Zone incentive package announced to boost financial services and fintech activity there.

Read the figures in context

This article is a market snapshot, not a substitute for property-specific due diligence. National transaction value can rise because of a relatively small number of large deals, while conditions in an individual town or property type may differ. For method and valuation context, read How to Read NAPIC Transaction Data for Property Valuation.

Notable big-ticket deals

The market's largest recorded transactions in 2025 give a sense of where big capital moved. Menara CIMB at Kuala Lumpur Sentral changed hands for RM680 million, matching the sale price of AEON Bukit Tinggi in Klang. Johor's Paradigm Mall in Bukit Mewah, Johor Bahru topped the year's shopping complex sales at RM1.157 billion, underscoring how much investor appetite has shifted toward the southern corridor as Johor-Singapore economic ties deepen.

What this means if you're buying, selling, or investing

For homebuyers, a market where volume dipped slightly while the provisional national house-price index increased suggests a steadier environment than the post-pandemic boom years, rather than a broad downturn. For sellers, the increase in overall transaction value indicates that well-priced, well-located properties continued to transact. For investors and developers, the sharpest growth signal in the report was industrial property transaction value — worth examining alongside asset-level fundamentals.

Whichever side of a deal you're on, the numbers only tell you where the market has been. PropPlace.my's Deal Intelligence tool benchmarks a specific property against live listings and NAPIC transaction data to tell you where a deal stands today, and PropBot can answer quick questions about pricing and trends in the area you're actually looking at.

*Sources: NAPIC Property Market Report 2025 and Bank Negara Malaysia's OPR decisions. Reviewed 22 July 2026.*