PUCHONG (Jan 22, 2026) – Malaysia’s residential property market has seen significant changes over the past few decades, with prices shaped by economic cycles, crises and recovery periods. Despite recent growth, house prices remain below their pre-Asian Financial Crisis (1997) levels when adjusted for inflation — underlining how long-term price growth has been constrained compared with earlier expectations.
Post-Asian Financial Crisis Recovery and Growth
After the 1997–98 crisis, which saw a sharp downturn in property values across the country, Malaysia’s housing market gradually recovered in the 2000s. Between 2005 and 2015, Kuala Lumpur property prices surged strongly — climbing almost 122% in nominal terms (around 73% after inflation adjustment) — driven in part by major infrastructure projects and urban development plans, such as public transport expansions.
At the same time, nationwide house prices also rose, albeit more moderately, with an increase of around 96% (about 52% inflation-adjusted) over the same decade.
Slower Growth in Recent Years
In more recent years, the pace of price growth has cooled. A combination of government market-cooling measures and the impact of the COVID-19 pandemic tempered price increases. Nationwide residential property price growth was modest in 2019–2021, with annual increases often below 2% and occasional real-term declines when adjusted for inflation.
Current Price Trends
Latest official data continues to show modest movement in Malaysia’s property prices. For example, quarterly price indices from the Valuation and Property Services Department indicate relatively small year-on-year changes in recent periods — reflecting a stable but slow-moving market.
What This Means for Buyers and Investors
Overall, Malaysia’s house prices have grown over the long term, but not as sharply as in many other markets — especially once inflation is taken into account. While specific areas such as Kuala Lumpur have experienced stronger growth, the national picture suggests a more measured pace of price appreciation.
For detailed graphs, country comparisons and more on price changes over time, visit the full analysis on Global Property Guide: https://www.globalpropertyguide.com/asia/malaysia/price-history