Malaysia Residential Property Market 2025: What Buyers Can Learn

Residential property remains Malaysia's largest and most closely watched property segment, and 2025's numbers tell a story of a market that has cooled slightly in volume but continues to hold its value. According to NAPIC's Property Market Report 2025, a total of 256,512 residential transactions worth RM108.27 billion were recorded during the year — a marginal 1.5% decline in volume but a 1.3% increase in value compared to 2024's 260,516 transactions worth RM106.92 billion.

Where the demand is

Selangor remained the largest contributor to national residential transactions, capturing 20.7% of volume (52,998 transactions) and 28.2% of value (RM30.53 billion). Johor came in second by volume, with 16.6% (42,566 transactions), while its RM20.94 billion represented about 19.3% of national residential transaction value. Together with Kuala Lumpur and Pulau Pinang, these four markets accounted for more than half of all residential transaction volume nationwide — a reminder that Malaysia's housing demand remains heavily concentrated around its major urban and industrial corridors.

Affordability is still driving the market

By price range, homes priced RM300,000 and below made up 52.3% of all residential transactions in 2025 — by far the largest segment. Mid-range homes between RM300,001 and RM500,000 accounted for another 24.9%, while homes priced RM500,001 to RM1 million made up 16.9%. Homes above RM1 million represented just 5.9% of transactions. In short: more than three-quarters of all home purchases in Malaysia last year were for properties priced under RM500,000.

By property type, terraced houses remained the most sought-after, comprising 41.3% of all residential transactions, followed by vacant residential plots (18.1%), high-rise units such as condominiums and apartments (14.3%), low-cost houses and flats (10.6%), and semi-detached houses (7.3%). Most buyers were also purchasing in the secondary market rather than directly from developers — 84.5% of transactions were secondary-market resales, with only 15.5% representing new purchases straight from developers.

House prices: steady, not runaway, growth

The provisional Malaysian House Price Index (MHPI) for 2025 stood at 233.1 points, with the provisional national average house price at RM502,922 — moderate annual growth of 2.6%. Every state recorded positive price growth ranging from 0.8% to 6.9%, which NAPIC frames as a sign of price stability rather than a market running hot or cold.

Prices vary widely by state. Kuala Lumpur remains the most expensive market by a clear margin, with an average price of RM819,848 per unit in 2025, followed by Selangor at RM567,505. At the other end, Melaka and Perlis continued to record the lowest average house prices nationally, both under RM260,000 per unit — a gap of more than 3x between the priciest and most affordable major markets.

By house type, terraced houses led price growth at 3.3%, followed by semi-detached houses (2.8%), detached houses (2.4%), and high-rise units, which grew the slowest at just 0.6%. If you're watching for capital appreciation, landed terraced housing outpaced high-rise stock across the board in 2025.

New launches slowed — but that's not necessarily bad news for buyers

Developers pulled back in 2025: only 64,487 new residential units were launched, down 14.9% from 75,784 units in 2024, with sales performance easing to 35.5%. NAPIC attributes this to a more cautious sentiment among developers amid global economic uncertainty. Selangor still led new launches with 22.3% of the total (14,358 units) and a 32.3% sales rate, while Johor's smaller share of new launches (17.3%, 11,151 units) achieved a notably higher 55.3% sales performance — suggesting Johor's new-launch buyers were more decisive than Selangor's in 2025.

What this means for buyers

Slower new-launch activity combined with steady but unspectacular provisional price growth suggests 2025 was not a market defined by runaway price appreciation. Affordable and mid-range housing absorbed the bulk of demand, and secondary-market resales dominated transaction activity — conditions that rewarded patient, well-researched buyers rather than urgency-driven ones.

If you're weighing a purchase, start with PropPlace.my's complete residential buying guide. You can then filter listings by price range and location, while Deal Intelligence can benchmark a specific asking price against live comparables and NAPIC transaction data before you commit.

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). NAPIC's report itself labels Johor's RM20.94 billion share as 8.2%; this article uses approximately 19.3%, calculated against the reported RM108.27 billion national residential total. Reviewed 22 July 2026.