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
What is happening in Malaysia’s real estate market? Are prices on the rise or decline? Is Kuala Lumpur still a magnet for international investors? How are Malaysia’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Malaysia, from Penang to Johor Bahru and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Malaysian real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
1) Malaysia’s property prices will stabilize as the market adjusts to post-pandemic conditions
In 2025, the Malaysian residential property market is finding its footing in a post-pandemic world.
Developers are showing renewed confidence, with new residential launches up by 19.8% in early 2024. This surge in activity is a clear sign that the market is bouncing back, offering fresh opportunities for potential buyers. The government's push for affordable housing, especially through the Residensi Rakyat Programme, is also playing a crucial role. By increasing the supply of budget-friendly homes, these initiatives are helping to balance demand and stabilize prices.
Foreign investors are not sitting on the sidelines either. In the third quarter of 2024, they poured 22.2 billion MYR into the market, marking the highest investment since 2012. This influx of international interest is a testament to Malaysia's appeal as a property investment destination. Meanwhile, the issue of unsold homes is being addressed effectively. The residential overhang saw a 14.3% reduction in Q3 2023, indicating that more properties are being snapped up.
As more completed houses hit the market, the balance between supply and demand is being maintained, which is essential for a stable property environment. This steady delivery of homes ensures that buyers have options, while sellers can find interested parties, keeping the market healthy. The combination of these factors suggests that the Malaysian property market is on a path to stability, offering a promising landscape for those looking to invest in real estate.
Sources: Bernama, Property Genie, Global Property Guide
2) Chinese buyers will increasingly seek Malaysian properties for investment opportunities abroad
Chinese investors are increasingly eyeing real estate opportunities in Malaysia.
In 2023, China's outbound investments saw an 8.7% rise, hitting a hefty US$177.3 billion, with a big slice going to Southeast Asian real estate. By 2024, this trend didn't just continue; it grew by 12.5% year-on-year, showing a clear interest in overseas ventures.
Malaysia stands out as a hot spot for these investments. The favorable exchange rate between the Chinese yuan and the Malaysian ringgit makes Malaysian properties more appealing to Chinese buyers. Plus, Malaysia's role in China's Belt and Road Initiative has sparked major projects like Forest City, catching the eye of many Chinese investors.
There's also a noticeable increase in the number of Chinese nationals settling in Malaysia. By early 2024, they made up about 44% of active pass holders for Malaysia's retirement residency visa scheme. This growing community is likely to boost property demand even further.
Malaysia's strategic location and relatively affordable property prices add to its allure for Chinese investors. The combination of these factors makes it a prime choice for those looking to invest abroad.
Sources: SEO Agency China, China Briefing, Channel News Asia
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.
3) Foreign buyers will increasingly target Malaysia’s residential market due to favorable exchange rates
Foreign buyers are increasingly eyeing Malaysia's residential market thanks to favorable exchange rates.
When the Malaysian Ringgit weakens, it becomes a golden opportunity for those with stronger currencies. In 2023, the Ringgit's value dropped, making Malaysian properties more affordable and attractive to foreign investors. This shift has been a game-changer for the market.
We've seen a noticeable uptick in foreign direct investment during these times. In the third quarter of 2024, foreign direct investment hit MYR 14.52 billion, with a good chunk flowing into real estate. This shows that investors are eager to capitalize on the currency benefits.
Real estate agencies are buzzing with inquiries from abroad. PropertyGuru highlights that Johor's residential market is thriving due to infrastructure developments and favorable exchange rates. This area is particularly appealing because of its connection to Singapore through the proposed Special Financial Zone and Rapid Transit System.
Case studies reveal that foreign investors are snapping up properties in Malaysia, especially in Johor. The currency advantage is a major draw, making it a hotspot for those looking to invest wisely.
Sources: Global Property Guide, Trading Economics, IMF eLibrary
4) Rents in major cities will increase as urbanization drives more people to urban centers for work
Urbanization in Malaysia is on the rise, with 78.72% of the population living in cities by 2023.
As more people flock to urban centers for work, the demand for rental properties is climbing. In cities like Kuala Lumpur, Penang, and Johor Bahru, rental prices have been steadily increasing. For example, in Kuala Lumpur, a one-room apartment averages RM2,127 per month. High-rise apartments in the city center are especially popular, offering rental yields up to 5.86%.
Malaysia's economy is shifting from agriculture to industry and services, creating more urban job opportunities. This shift is a major factor in the migration to cities. Infrastructure projects like the MRT 3 in Kuala Lumpur are also enhancing urban connectivity, making city life more appealing and accessible.
With these developments, urban living is becoming more attractive, drawing even more people to the cities. This trend is expected to continue, leading to increased demand for housing in urban areas.
As urbanization continues, rents in major cities are likely to rise. More people moving to urban centers for work will only fuel this trend further.
Sources: Statista, IQI Global, Trading Economics
6) Remote work growth will boost interest in properties with home office spaces
The rise of remote work is reshaping property preferences in Malaysia.
With more people working from home, there's a growing interest in homes with dedicated office spaces. This trend is driven by the fact that 88% of Malaysian employees want to work remotely at least once a week. Among Gen Z, this preference is even stronger, with 93% of those aged 18-24 favoring remote work. As a result, having a home office is becoming a must-have feature.
The Malaysian government is also playing a role in this shift. Through initiatives like the Digital Investment Office, they are enhancing the digital ecosystem, making remote work more appealing. This support is encouraging more people to seek out homes that can accommodate their work-from-home needs.
Real estate listings are catching on, now emphasizing home office features as a major selling point. This change reflects the increasing demand for properties that blend work and personal life seamlessly. As remote work becomes more common, the interest in homes with office spaces is expected to keep rising.
For those considering buying property in Malaysia, it's worth noting that the market is adapting to these new needs. Homes with flexible spaces that can serve as offices are becoming more popular, catering to the growing number of remote workers.
As remote work continues to gain traction, properties with home office spaces are likely to see increased interest. This trend is not just a passing phase but a significant shift in how people choose their living spaces.
Sources: Employment Hero’s 2022 Remote Work Report, The Edge Malaysia, RemoFirst on Remote Hiring in Malaysia
7) Luxury property prices will dip slightly as buyers focus on affordability and practicality
In Malaysia, luxury property prices are expected to dip slightly as buyers focus more on affordability and practicality.
In 2023, the market saw a significant surplus of over 26,000 unsold luxury homes, valued at RM18.3 billion. This glut is putting pressure on developers to lower prices to move inventory. When there's too much of something, prices tend to drop, and that's exactly what's happening here.
Transaction volumes for high-end real estate have also taken a hit. In the first half of 2023, residential property transactions fell by 1% compared to the previous year. This slight dip indicates that buyers are becoming more cautious, perhaps waiting for better deals or shifting their focus to more affordable options.
There's a noticeable trend of people moving to cities for work, which is driving up demand for mid-range and affordable housing. This urbanization means buyers are prioritizing practicality over luxury, looking for homes that fit their budgets and lifestyles.
To tackle the issue of unsold luxury properties, developers are offering discounts and incentives. This is a common tactic in markets with an oversupply, and it further contributes to the decline in luxury property prices. It's a buyer's market, and developers are keen to make deals.
As the market adjusts, it's clear that the focus is shifting. Buyers are more interested in what they can afford and what makes sense for their lives, rather than just the allure of luxury. This change is reshaping the property landscape in Malaysia.
Sources: EdgeProp, KL Property, Global Property Guide
8) Urban areas will see increased demand for affordable housing as the middle class grows
The growing middle class in Malaysia is fueling the demand for affordable housing in cities.
In 2024, a large chunk of Malaysians, about 92.5% earned as much as the top 40% of global earners, showing a boost in middle-class incomes. This means more people are ready to buy homes, but they’re on the lookout for budget-friendly options.
Urban living is on the rise, with 78.72% of Malaysia's population residing in cities as of 2023, and this trend is climbing. People are flocking to urban areas for better job prospects, naturally pushing up the need for housing there.
The government is stepping up, rolling out initiatives to meet this demand. They’re building more affordable apartments, opening up public lands for housing, and offering tax-free savings plans for first-time buyers. These moves are all about making homes more accessible to the middle class.
As cities grow, the need for affordable housing becomes even more pressing. The migration from rural to urban areas is a big driver, and the government’s efforts are crucial in addressing this shift.
For those considering buying property in Malaysia, understanding these dynamics is key. The middle class is expanding, and with it, the demand for homes that don’t break the bank.
Sources: Statista, Statista, Budget 2024
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.
9) Demand for retirement-friendly properties near healthcare facilities will rise due to an aging population
Malaysia's population is getting older, with 7.4% of people over 65 in 2023.
By 2030, over 15% of Malaysians will be over 60, which means more people will need homes that suit their lifestyle. This trend is clear from government reports in 2024, which showed 3.9 million people aged 60 and over. This shift is driving the demand for retirement-friendly properties.
Healthcare is a big deal for older folks, and the costs are climbing. By 2040, healthcare expenses for the elderly in Malaysia could hit RM 21 billion. So, having retirement homes near healthcare facilities is crucial for easy access to medical care.
Imagine living in a place where you can easily get to a doctor or hospital. That's what many older Malaysians are looking for. The need for such properties is growing as the population ages, and developers are taking note.
In Malaysia, the aging trend is not just about numbers; it's about creating communities that offer comfort and convenience. Developers are focusing on building homes that cater to the needs of older adults, ensuring they have everything they need close by.
As more people enter their golden years, the demand for these specialized properties will only increase. It's a trend that's reshaping the real estate market in Malaysia, making it an exciting time for potential buyers.
Sources: Statista, Malay Mail, Journal of Health and Population Research
10) Property values will rise in areas connected by expanding public transportation networks
In Malaysia, public transportation expansions are boosting property values.
Take Kuala Lumpur, for example. Properties near LRT/MRT stations have seen a 15% to 25% price jump over the past five years. The MRT Sungai Buloh-Kajang line is a game-changer, with Damansara properties up by 15% and Kajang by 18%. These areas are now hot spots, especially for young families.
Real estate agencies like PropSocial note that homes near transit stations outperform others. This isn't just a fluke; it's part of a government push for a connected, vibrant nation. The strategy is a win-win, boosting business and making life better for residents.
People are catching on. Surveys show a high demand for properties near LRT/MRT stations, thanks to the "transit premium" effect. This isn't just talk; urban planners and economists agree that public transport can make areas more appealing for living and investing.
So, if you're eyeing property in Malaysia, consider the transit map. Areas with new or expanded public transport links are likely to see continued growth in property values. It's not just about convenience; it's about investment potential.
As the government continues to expand these networks, expect more areas to become attractive. The trend is clear: public transport is a key driver of real estate value in Malaysia.
Sources: PropSocial, The Star, Sciendo
13) Interest in Perlis will grow as it remains one of Malaysia's most affordable regions
The northern region of Perlis is catching eyes as one of Malaysia's most affordable areas.
In 2023, the median home price in Perlis was RM 355,000, a bargain compared to other states. This affordability is drawing in both buyers and investors, with the average property price at RM 233,842. The region saw a slight uptick in property transactions, with 4,061 units sold, a 0.7% increase from the previous year.
Perlis is not just about low prices; it's also about growth. The Northern Corridor Economic Region (NCER) is rolling out projects to modernize agriculture and improve infrastructure. The Northern Corridor Highway is a game-changer, making Perlis more accessible and boosting its appeal.
These efforts are paying off, enhancing the quality of life and making Perlis a more attractive place to live and invest. The buzz is real, with more people showing interest in the region, evident from the rise in property inquiries and searches.
Sources: Global Property Guide, Northern Region Property Market Report 2023, NCER Strategic Development Plan
14) Melaka will attract more interest for its historical importance and expanding tourism sector
Melaka is buzzing with interest thanks to its rich history and booming tourism.
In 2024, Melaka saw 3.7 million visitors in just the first quarter, aiming for a whopping 18.7 million by year-end. This surge highlights a growing fascination with the region. The government is pulling out all the stops to promote Melaka as a must-visit destination. With initiatives like Visit Melaka Year 2024, they're rolling out programs to draw in the crowds.
Traveling to Melaka has never been easier, thanks to over 3,100 weekly international flights enhancing connectivity. This boost in accessibility is a game-changer for tourism flows. The state is also investing heavily in infrastructure to enrich the tourist experience. A standout project is the new floating market at the Melaka River, featuring 40 vendors and 30 sampans, offering unique experiences that are sure to attract more visitors.
The hospitality sector is expanding rapidly, with new hotel openings on the horizon to accommodate the influx of tourists. This growth is a clear indicator of the increasing interest in Melaka. The combination of historical allure and modern attractions is making Melaka a hot spot for travelers.
Melaka's historical significance is a major draw, but it's the blend of old and new that captivates visitors. The state's proactive approach in enhancing tourist attractions and improving accessibility is paying off. With the tourism sector booming, Melaka is set to become an even more popular destination.
Sources: Malay Mail, Travel and Tour World, The Star
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.
17) The Klang Valley will remain a prime property investment area due to ongoing urbanization and job growth
The Klang Valley is a prime spot for property investment, thanks to ongoing urbanization and job opportunities.
In this bustling region, which includes Kuala Lumpur and Selangor, population growth is on the rise as people flock here for better job prospects. This surge in residents is driving up demand for both housing and commercial spaces, making it a magnet for property investors.
Malaysia's urbanization is happening fast, and the Klang Valley is leading the charge. With economic growth and new job creation fueling this trend, the area is a major economic hub. It's attracting investments from both local and international players, especially in booming sectors like technology, finance, and healthcare.
Infrastructure is a game-changer here. The completion of the Putrajaya Line under the KVMRT project and the upcoming MRT3 Circle Line are boosting public transport connectivity. These projects not only ease traffic but also open up new areas for investment, making the region more accessible and livable.
As more people move to the Klang Valley, the property market is getting a significant boost. The region's appeal is further enhanced by its strategic location and robust infrastructure, which continue to draw in both residents and investors.
Sources: The Edge Malaysia, AECOM, Everthrive Realty, DPI Media, Vodus
Don't lose money on your property in Malaysia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.