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Malaysia’s property market showed moderate growth in the third quarter of 2025, according to the Valuation and Property Services Department (JPPH). Transaction value jumped by 12.5% to RM 64.39 billion, compared to Q3 2024 — though the number of transactions edged down by 3.5%, totaling 108,250. Malay Mail+1

Wilson

Author Updated on: November 17, 2025

PUCHONG (Nov 17, 2025) –JPPH Director-General Abdul Razak Yusak noted that a rise in completed residential units is helping stabilise the market, especially benefiting first-time buyers. Malay Mail He also pointed to the Overnight Policy Rate (OPR) being lowered to 2.75%, which has boosted affordability and revived momentum in the residential segment. Malay Mail

However, the sector is treading carefully amid global economic uncertainty. Under the Madani framework, government support has played a key role in maintaining market stability. Malay Mail Among the policy measures cited are:

  • Tax relief on interest for housing loans (for homes priced between RM 500,000 to RM 750,000) for the year. Malay Mail
  • The Step Up Financing Scheme through the Housing Credit Guarantee Scheme (SJKP), which helps first-home buyers. Malay Mail

Some key market indicators from the report:

  • The Malaysia House Price Index (MHPI) grew by 0.1% year-on-year, reaching 229.1 points; the average home price stood at RM 494,384. Malay Mail
  • On the supply side, there were mixed signals: completed homes increased, but housing starts and planned supply dropped. Malay Mail
  • New residential launches declined to 11,533 units, with a sales rate of only 14%, reflecting cautious developer sentiment. Malay Mail
  • Unsold completed units rose to 28,672 units worth RM 17.25 billion (up 6.5% in volume, 4.9% in value from Q2). Malay Mail
  • Unsold serviced apartments also inched up to 17,892 units, valued at RM 14.48 billion. Malay Mail
  • On the commercial front, occupancy rates improved: business complexes reached 78.6% (vs 77.6% previously), while private purpose-built offices held steady at 71.9%. Malay Mail

Abdul Razak expressed that the outlook remains optimistic yet cautious, given both domestic and global uncertainties. Malay Mail He also highlighted that recent trade agreements with the United States, signed during the ASEAN Summit, have helped ease earlier policy uncertainty — potentially boosting long-term confidence in the property sector. Malay Mail

Looking ahead, under Budget 2026, the government plans to accelerate major housing initiatives, including:

  • People’s Residence Programme (PRR)
  • Residensi Madani
  • Rumah Mesra Rakyat (RMR)
  • PR1MA
  • Infrastructure development to support nationwide construction Malay Mail
    Over the longer term, the 13th Malaysia Plan (2026–2035) aims to deliver 1 million affordable homes, a move seen as critical to expanding homeownership among low and middle-income families. Malay Mail

Finally, Abdul Razak encouraged real estate players to capitalise on the upcoming Visit Malaysia Year 2026 campaign and the improved Malaysia My Second Home (MM2H) programme — both of which could spur demand for premium homes and serviced apartments in tourist and urban hubs. Malay Mail


Original article: Malaysia’s property market posts moderate Q3 growth despite cautious sentiment — Malay Mail.

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