Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Everything you need to know before buying real estate is included in our Malaysia Property Pack
If you're thinking about buying property in Malaysia, you're probably wondering whether January 2026 is actually the right time to make your move.
This blog post breaks down the current housing prices in Malaysia, market signals, and what the data really says about where things are headed.
We constantly update this article to reflect the latest shifts in the Malaysian property market, so you always have fresh numbers to work with.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Malaysia.
So, is now a good time?
Rather yes, but only if you buy selectively and focus on the right property types and locations in Malaysia.
The strongest signal is that Malaysia's official house price index has been nearly flat heading into 2026, meaning you're not buying at a peak.
Another strong signal is that borrowing costs dropped after Bank Negara Malaysia cut the overnight policy rate to 2.75% in mid-2025, making mortgages more affordable.
There's also significant unsold completed stock (overhang) in condos and serviced residences, which gives buyers real negotiation leverage on price and incentives.
The best strategy in Malaysia right now is to target well-located landed homes in established suburbs like Mont Kiara, Bangsar, or Subang Jaya if you want stability, or negotiate hard on high-rise units in oversupplied areas if you're comfortable with more risk.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Malaysia, or should I wait as of 2026?
Do real estate prices look too high in Malaysia as of 2026?
As of early 2026, property prices in Malaysia look closer to fair value than overheated, with the national average home price sitting around RM494,000 and official price growth nearly flat year-on-year.
One clear on-the-ground signal that supports this is the weak take-up on new launches across Malaysia, meaning developers are often offering rebates, free furnishings, and other sweeteners to move units, which tells you buyers have options.
Another telling sign is the rising overhang of unsold completed homes, especially in high-rise and serviced residence segments, which suggests sellers are struggling to find buyers at their asking prices in parts of Kuala Lumpur and Johor.
You can also read our latest update regarding the housing prices in Malaysia.
Does a property price drop look likely in Malaysia as of 2026?
As of early 2026, the likelihood of a broad national price crash in Malaysia is low, though pockets of price softness remain very possible in oversupplied segments like condos and serviced apartments.
Our confident base-case price range for Malaysia over the next 12 months is roughly minus 2% to plus 4% nationally, with well-located landed homes closer to 0% to plus 6% and over-supplied high-rise units potentially seeing minus 5% to plus 2%.
The single most important macro factor that could increase the odds of a price drop in Malaysia is a sharp deterioration in employment or household income growth, since affordability is already stretched at a price-to-income multiple around 5.6 to 5.9 times.
That said, a major jobs shock looks unlikely in the near term, as Malaysia's economy has been growing moderately and Bank Negara's rate cut was preemptive rather than crisis-driven.
Finally, please note that we cover the price trends for next year in our pack about the property market in Malaysia.
Could property prices jump again in Malaysia as of 2026?
As of early 2026, the likelihood of a sharp national price surge in Malaysia is low to medium, because there's no obvious demand trigger and meaningful supply exists in several segments.
The plausible upside range for Malaysian property prices over the next 12 months is roughly plus 2% to plus 6% in strong submarkets, with landed homes in high-demand suburbs like Bangsar, Mont Kiara, and Subang Jaya most likely to outperform.
The single biggest demand-side trigger that could drive prices higher in Malaysia is continued or deeper interest rate cuts by Bank Negara, which would make mortgages even cheaper and pull more buyers off the sidelines.
Please also note that we regularly publish and update real estate price forecasts for Malaysia here.
Are we in a buyer or a seller market in Malaysia as of 2026?
As of early 2026, Malaysia's residential market leans more toward buyers than sellers, especially for high-rise condos and new launches where negotiation leverage is strongest.
Malaysia doesn't publish a single official months-of-inventory figure, but the persistent overhang of unsold completed homes (particularly in serviced residences) suggests supply exceeds immediate demand in several markets, which typically means buyers can negotiate harder on price.
While Malaysia doesn't track listing price reductions the way some Western markets do, the weak take-up rates on new launches and the prevalence of developer incentives like rebates and free furnishings serve as a proxy, telling us sellers are having to work harder to close deals.
We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Malaysia as of 2026?
Are homes overpriced versus rents or versus incomes in Malaysia as of 2026?
As of early 2026, homes in Malaysia look slightly stretched versus incomes but closer to fair when compared to rents, meaning affordability is tight for many buyers even though investment yields remain reasonable.
The price-to-rent ratio in Malaysia sits around 19 times annual rent based on an average gross yield of about 5.2%, which is within a normal range for a developing Asian market and suggests property isn't wildly overpriced relative to what it can earn.
The price-to-income multiple in Malaysia is roughly 5.6 to 5.9 times median household income (using the latest DOSM figure of around RM7,000 per month and NAPIC's average price near RM494,000), which is elevated compared to a "comfortable" benchmark of 3 to 4 times and explains why many Malaysian families still feel priced out.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Malaysia.
Are home prices above the long-term average in Malaysia as of 2026?
As of early 2026, Malaysian home prices are not dramatically above their long-term average, with the BIS real (inflation-adjusted) price series showing the market is in a flatter phase rather than a historic peak.
The recent 12-month price change in Malaysia has been close to flat (roughly 0% to 2% depending on the segment), which is well below the double-digit growth seen in some earlier boom years and more in line with a mature, stable market.
When adjusted for inflation, Malaysia's real house prices have not surpassed their prior cycle peaks from before 2015, suggesting there's no bubble condition and that current prices reflect a more normalized environment.
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What local changes could move prices in Malaysia as of 2026?
Are big infrastructure projects coming to Malaysia as of 2026?
As of early 2026, several major infrastructure projects in Malaysia are reshaping local property values, with the MRT3 Circle Line in Greater Kuala Lumpur being one of the most impactful, expected to improve connectivity and boost prices in stations catchments across areas like Sentul, Kepong, and Titiwangsa.
The MRT3 project is currently in active construction with full completion expected around 2028 to 2030, meaning buyers purchasing now near planned stations in Kuala Lumpur could benefit from price appreciation as completion approaches and accessibility improves.
For the latest updates on the local projects, you can read our property market analysis about Malaysia here.
Are zoning or building rules changing in Malaysia as of 2026?
There is no single major national zoning overhaul being discussed in Malaysia right now, but the more important "rule" story is about supply discipline, as persistent overhang in certain areas is pressuring developers and local authorities to be more selective about approving new projects.
As of early 2026, the net effect of this informal tightening is likely to be supportive for prices in the medium term, because fewer speculative launches means less competition for existing stock and better absorption of current inventory.
The areas most affected by this cautious approach to new approvals in Malaysia are the high-rise and serviced residence corridors in Greater KL and Johor, particularly places like Iskandar Puteri and parts of Cheras where oversupply has been most acute.
Are foreign-buyer or mortgage rules changing in Malaysia as of 2026?
As of early 2026, there are no major foreign-buyer restrictions being tightened in Malaysia, and mortgage conditions have actually improved following Bank Negara's rate cut to 2.75% in mid-2025, making this a relatively favorable regulatory moment for both local and foreign purchasers.
The MM2H (Malaysia My Second Home) program remains the key channel for foreign residential demand, with the official immigration guidance allowing fixed deposit withdrawals for property purchase among other uses, though the program's tier structure and minimum requirements vary.
On the mortgage side, no significant new stress tests or LTV restrictions are being introduced, and the lower OPR environment means monthly payments are more manageable, though foreign minimum purchase thresholds (typically RM1 million or higher depending on the state) remain in place.
You can also read our latest update about mortgage and interest rates in Malaysia.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Malaysia as of 2026?
Is the renter pool growing faster than new supply in Malaysia as of 2026?
As of early 2026, the balance between renter demand and new rental supply in Malaysia varies sharply by location, with strong job nodes like KLCC, Mont Kiara, and Petaling Jaya seeing healthy tenant demand, while investor-heavy towers in fringe areas struggle with excess supply.
The best proxy for renter demand growth in Malaysia is urbanization and job creation in Greater KL, Penang, and Johor, where young professionals and expats continue to concentrate near employment centers and transit lines.
On the supply side, Malaysia's construction statistics show ongoing residential completions, but the key issue is that much of this supply is concentrated in specific high-rise corridors where overhang is already high, meaning "effective" new supply in desirable locations is actually more limited.
Are days-on-market for rentals falling in Malaysia as of 2026?
As of early 2026, days-on-market for rentals in Malaysia vary widely depending on location and property type, with well-priced family homes in established suburbs typically letting within 15 to 35 days while investor-dense serviced apartments can sit for 45 to 90 days or longer.
The gap between best areas and weaker areas is significant in Malaysia, where a furnished condo near an MRT station in Bangsar or TTDI might find a tenant in under a month, while a similar unit in an oversupplied tower in Iskandar or outer Cheras could take three months or more.
One common reason days-on-market falls in Malaysia's strong rental nodes is the concentration of expat and professional tenants near multinational offices and international schools, creating repeat tenant turnover that keeps absorption brisk in neighborhoods like Mont Kiara, Damansara Heights, and parts of Penang.
Are vacancies dropping in the best areas of Malaysia as of 2026?
As of early 2026, vacancy rates in Malaysia's best-performing rental areas like Mont Kiara, Bangsar, KLCC, and Subang Jaya tend to be structurally lower than the national average, though performance still varies building by building based on management quality and tenant mix.
In these premium neighborhoods, vacancy is typically in the low single digits (around 3% to 7%) compared to market-wide averages that can exceed 15% to 20% in oversupplied high-rise corridors, reflecting the depth of professional and expat tenant demand in established locations.
One practical sign that these best areas are tightening first in Malaysia is when landlords start receiving multiple inquiries within the first week of listing, or when tenants begin renewing leases at small rental increases rather than shopping around, both of which signal limited alternatives in the immediate area.
By the way, we've written a blog article detailing what are the current rent levels in Malaysia.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Malaysia as of 2026?
Is for-sale inventory shrinking in Malaysia as of 2026?
As of early 2026, for-sale inventory in Malaysia is not clearly shrinking at the national level, because unsold completed units (overhang) actually rose through late 2025, particularly in high-rise and serviced residence segments.
Malaysia doesn't publish a single official months-of-supply figure, but the elevated overhang suggests inventory is above balanced-market levels in many segments, meaning buyers still have plenty of options and shouldn't feel rushed.
Are homes selling faster in Malaysia as of 2026?
As of early 2026, homes in Malaysia are generally not selling faster across the board, with weak take-up on new launches suggesting many properties need more time or bigger incentives to find buyers.
Year-over-year, selling times in Malaysia have been relatively stable to slightly longer in oversupplied segments, with well-priced landed homes in strong suburbs moving in 45 to 90 days while high-rise units in competitive areas can take 120 days or more.
Are new listings slowing down in Malaysia as of 2026?
As of early 2026, the more relevant signal in Malaysia than "listings" is "new launches," and developer launch activity has been cautious in segments where take-up has been weak, particularly serviced residences and mass-market condos in oversupplied areas.
Malaysia's property market typically sees stronger launch activity in the first and fourth quarters, with mid-year being quieter, and the current level of new supply is more measured than the aggressive launches seen in earlier boom years.
The most plausible reason new launches are slowing in certain segments is that developers are watching their unsold inventory pile up and choosing to phase releases more conservatively rather than flood an already soft market.
Is new construction failing to keep up in Malaysia as of 2026?
As of early 2026, new construction in Malaysia is not failing to keep up at the national level, in fact the issue is more about supply being in the wrong places or property types rather than an overall shortage.
DOSM's construction statistics show continuing residential building activity through 2025, with construction work done remaining solid, but much of this new supply is concentrated in high-rise segments that already have excess inventory.
The main bottleneck in Malaysia isn't construction capacity itself but rather market absorption, where developers can build but struggle to sell, leading to the overhang problem that gives buyers leverage today.
We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Malaysia as of 2026?
Is resale liquidity strong enough in Malaysia as of 2026?
As of early 2026, resale liquidity in Malaysia is adequate in the right submarkets but mixed nationally, with well-located landed homes and transit-connected condos selling reasonably well while generic high-rise units in oversupplied areas can sit for months.
The median days-on-market for resale homes in Malaysia varies widely, from around 45 to 90 days for desirable landed properties in established suburbs to 120 days or more for high-rise units competing with many similar listings, compared to a "healthy liquidity" benchmark of under 60 days.
The property characteristic that most improves resale liquidity in Malaysia is location near job centers, transit stations, and good schools, followed by being a landed property (terrace, semi-D, or bungalow) rather than high-rise, since landed homes have deeper owner-occupier demand.
Is selling time getting longer in Malaysia as of 2026?
As of early 2026, selling time in Malaysia has been relatively stable to slightly longer compared to last year, particularly for high-rise properties competing with unsold developer stock and other resale listings.
The current median days-on-market in Malaysia ranges from roughly 45 days for well-priced landed homes in strong locations to 120 days or more for average condos, with some investor-heavy serviced residences taking 180 days or longer to find a buyer.
One clear reason selling time can lengthen in Malaysia is when buyers have too many similar options to choose from, which is exactly what happens in oversupplied high-rise corridors where your unit is competing with dozens of identical listings and developers offering rebates.
Is it realistic to exit with profit in Malaysia as of 2026?
As of early 2026, the likelihood of selling with a profit in Malaysia is medium, meaning it's achievable but depends more on buying well and choosing the right property than on riding a rising market.
The minimum holding period that most often makes exiting with profit realistic in Malaysia is around 5 to 7 years, which allows enough time for modest capital appreciation to offset transaction costs and account for market cycles.
The estimated total round-trip cost drag in Malaysia (buying plus selling costs including stamp duty, legal fees, agent commissions, and real property gains tax if applicable) is roughly 8% to 12% of the property value, or around RM40,000 to RM60,000 on a RM500,000 home (approximately USD 8,500 to USD 12,800, or EUR 7,800 to EUR 11,700).
The factor that most increases profit odds in Malaysia is buying below market value through negotiation, especially in oversupplied segments where desperate sellers or developers offering rebates can effectively give you a 5% to 10% head start on your equity position.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Malaysia, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| NAPIC Property Market Report Q3 2025 | Malaysia's official government property data hub run by the valuation department. | We used it to anchor price trends, new launch take-up rates, and overhang signals. We also used its breakdowns to separate landed versus high-rise dynamics. |
| DOSM Household Income Survey 2024 | Malaysia's official statistics agency publishing the country's headline income data. | We used it to estimate price-to-income affordability ratios for 2026. We also used state and urban income levels to explain why some metros stay expensive. |
| DOSM Construction Statistics Q3 2025 | Malaysia's official quarterly read on construction activity and supply pipeline. | We used it to assess whether new supply is accelerating or cooling. We also used it to interpret future inventory risk for 2026 buyers. |
| Reuters (BNM Rate Decision) | Top-tier wire service that accurately reports central bank decisions with timestamps. | We used it to pin down the turning point in borrowing costs feeding into 2026. We also used it to explain why affordability improved from rates rather than prices. |
| FRED/BIS Real Residential Property Prices | Reputable public platform with long-history, consistent methodology price series. | We used it to compare current prices against long-run cycles. We also used it to test whether Malaysia looks like a late-cycle boom or a flatter phase. |
| JLL Greater KL Residential Q3 2025 | Global consultancy with formal research standards and recurring market publications. | We used it to triangulate on-the-ground demand and sentiment in Greater KL. We also validated that the post-rate-cut environment is supporting activity. |
| Knight Frank Malaysia Real Estate Highlights 1H 2025 | Global real estate consultancy with established research methodology. | We used it to triangulate regional market conditions across KL, Penang, and Johor. We also supported neighborhood-level examples where demand is structurally stronger. |
| Global Property Guide (Malaysia Yields) | Long-running international dataset focused specifically on yield comparisons. | We used it to estimate price-to-rent ratios and typical gross yields across cities. We also used it to benchmark yield claims against a transparent external source. |
| IQI Malaysia Home Rental Index | Large private dataset with clear scope covering tens of thousands of rental transactions. | We used it to anchor rental trend direction and renter demand momentum. We also used it as a proxy for rental liquidity since NAPIC doesn't publish a residential rent index. |
| Immigration Department of Malaysia (MM2H) | Official government source for a key foreign demand channel in higher-end housing. | We used it to ground statements about MM2H's link to residential purchase. We also used it to avoid repeating outdated or blog-based MM2H rules. |
| iProperty Foreign Buyer Guide | Major Malaysian property portal that regularly updates buyer-facing rules and costs. | We used it only for practical reality that foreign minimum purchase thresholds vary by state. We kept it secondary and did not use it as main market direction evidence. |
| OpenDOSM Construction Dashboard | Official DOSM open-data product with transparent definitions and update cadence. | We used it to cross-check whether residential-related activity is expanding or contracting. We also used it as a second official lens on supply beyond one PDF release. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malaysia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.