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
Are you considering investing in Malaysia's real estate market? Curious about which areas are set to boom in 2025? Want to know where your investment will yield the highest returns?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Malaysia Property Pack
1) Ayer Keroh in Melaka is a real estate hotspot due to its tourism appeal and booming short-term rentals
Ayer Keroh in Melaka is turning heads in the real estate market.
Thanks to a surge in tourism, this area is buzzing with activity. In early 2024, Melaka saw 3.7 million visitors, and the buzz is that this number could hit 18.7 million by year's end. This influx is fueled by exciting events and programs that keep tourists coming back for more.
Short-term rentals are also booming in Ayer Keroh. As of September 2024, there are 4,206 active Airbnb listings in Melaka. With a median occupancy rate of 35% and an average daily rate of MYR247, it's clear that the short-term rental market is both stable and profitable.
On average, a typical Airbnb listing in Melaka is booked for 128 nights a year, bringing in an annual host income of around MYR31K. This makes it an attractive option for property investors looking to capitalize on the tourism wave.
The local government is pulling out all the stops to boost tourism. The Visit Melaka Year 2024 campaign is a major initiative, featuring large-scale events like the National Youth Day celebration in May, which adds to the area's allure.
Sources: Malay Mail, Airbtics, Citizens Journal
2) Property demand in Kota Kinabalu's Likas Bay is surging due to scenic waterfront views and rising rental yields
The Likas Bay area in Kota Kinabalu is seeing a surge in property demand thanks to its scenic waterfront views and increasing rental yields.
In the first quarter of 2024, Kota Kinabalu's property market saw a 21.45% increase in transactions and a 30.32% rise in transaction value compared to the same period in 2023. This trend highlights the growing appeal of areas like Likas Bay, known for their picturesque settings.
Rental yields in Kota Kinabalu have also been climbing, averaging around 5.2% in 2025. This uptick is fueled by rising rental prices and stable property values, making waterfront areas like Likas Bay particularly attractive to investors seeking high returns.
Local media and real estate agencies frequently spotlight the demand in Kota Kinabalu, especially in waterfront locales such as Likas Bay. The city's expanding economy and tourism sector are key drivers of this property boom.
Government initiatives, including infrastructure projects to enhance transportation and public amenities, are further boosting the allure of Likas Bay. These improvements are expected to make the area even more desirable for potential buyers.
With its stunning views and promising rental returns, Likas Bay is quickly becoming a hotspot for property investment in Kota Kinabalu.
Sources: The Edge Malaysia, The African Vestor, The Edge Malaysia
Everything you need to know is included in our Property Investment Pack for Malaysia
3) Seberang Perai in Penang is a booming real estate market with industrial growth and affordable housing developments
Seberang Perai in Penang is quickly becoming a hot spot for real estate due to its booming industrial growth and affordable housing options.
Thanks to the Penang Development Corporation (PDC), new industrial areas like Bandar Cassia Technology Park and Batu Kawan Industrial Park 3 have popped up. These parks are part of the Integrated Industrial Park concept, which has attracted a lot of industrial investments. This influx is not just boosting the local economy but also creating numerous job opportunities for residents.
With the rise in industrial growth, there are more jobs, especially in electronics and medical sectors. This has improved living standards, making Seberang Perai a desirable place to settle. The state government’s Managed Industrial Park (MIP) concept is also in play, aiming to meet the growing demand for industrial land and further enhance Penang's investment climate.
On the housing side, Seberang Perai is seeing major affordable housing projects like Rumah Bakat Baru Madani. This project, starting in early 2024, will offer over 35,000 units using innovative construction methods. The combination of affordable housing and lower property prices compared to Penang Island makes this area appealing for homebuyers and investors.
For those in the B40 and M40 income groups, these housing projects are a game-changer. They provide a chance to own a home in a growing area without breaking the bank. The availability of affordable housing is a big draw, especially when you consider the economic opportunities brought by the industrial boom.
Seberang Perai is not just about industry and housing; it's about creating a balanced lifestyle. With job opportunities and affordable living, it’s a place where you can work and live comfortably. The district is shaping up to be a smart choice for anyone looking to invest in property.
Sources: The Edge Malaysia Weekly, Penang Property Talk, Buletin Mutiara
4) Setia Alam in Selangor is popular for its well-planned infrastructure and increasing property values
Setia Alam in Selangor is becoming a hot spot for property buyers, thanks to its smart infrastructure and rising property values.
In 2023, the area saw a lot of action in the property market, with Selangor recording 12,641 property transactions worth a whopping RM7,971.80 million. This shows just how lively the market is here.
Property prices in Setia Alam are on the up. For example, Bandar Setia Alam saw a 3.9% increase in property prices in 2023. This trend didn't stop there; in 2024, Bandar Tropicana Aman experienced a 4.3% rise, making the area even more attractive to buyers.
Real estate experts are taking note. Setia Alam is being flagged as a prime spot for investment. The Savills Klang Valley Residential Property Monitor highlighted the strong performance of semi-detached houses here, signaling good investment potential.
Developers like S P Setia are also making waves with their top-notch projects. Their new phases in Setia Bayuemas are acting as growth catalysts, drawing more interest to the area.
Sources: The Edge Malaysia, S P Setia, The Edge Malaysia
5) Mont Kiara in Kuala Lumpur is popular for luxury condos and a strong rental market for expatriates
Mont Kiara in Kuala Lumpur is a hotspot for luxury condos, especially popular among expatriates.
One reason for this popularity is the high occupancy rates in luxury condos like Pentamont Mont Kiara, completed in 2023. These properties are in demand because they offer modern amenities and are strategically located, making them very appealing.
Another draw is the impressive rental yields in the area. For example, OOAK Kiara 163, completed in 2022, offers yields between 9% and 11%. This makes Mont Kiara a smart investment choice, promising strong returns for both expatriates and locals.
The neighborhood's demographic is also a factor. Nearly half of Mont Kiara's residents are expatriates from over 30 countries, creating a lively international community. This diverse mix is attracted to the area's upscale vibe and abundant amenities.
Expatriates often praise Mont Kiara for its luxury lifestyle, international schools, and amenities, making it an ideal place to live and work. Surveys consistently rank Mont Kiara highly for its lifestyle offerings, including shopping centers, dining options, and social clubs.
Sources: Full List Of Condos In Mont Kiara - Price/Rent/Size/Details, The Expat Condo Rental Guide: Mont Kiara, Mont Kiara property insights on EdgeProp.my
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6) Kuantan's Teluk Cempedak area is booming with beachfront properties and rising tourist-driven rental income
Teluk Cempedak in Kuantan is quickly becoming a hotspot for beachfront property investments.
One of the main attractions is the rise in property developments like Balau Residences, which offer modern amenities such as an infinite edge sky pool and solar panels. These features are not just appealing to investors but also to tourists who crave a luxurious stay.
In 2023, Malaysia saw a doubling of tourist arrivals compared to the previous year, which naturally led to higher occupancy rates for short-term rentals in Teluk Cempedak. More tourists mean more demand for places to stay, boosting rental income for property owners.
Positive reviews on travel platforms, like an 8.6 rating for the Teluk Cempedak Semi-D House, show high visitor satisfaction. This kind of feedback encourages more tourists to visit and stay in the area, further driving up rental demand and income.
Government initiatives to promote tourism have also played a role in drawing more international visitors to Kuantan, enhancing the area's appeal as a tourist destination. This has made Teluk Cempedak a prime location for rental income driven by tourism.
Sources: Booking.com, Tourism Malaysia, Zerin Properties
7) Alor Setar in Kedah attracts interest for its low property prices and growth potential
Alor Setar is catching eyes because of its affordable property prices.
Imagine buying a home without breaking the bank. In Alor Setar, a 1-storey terraced house might set you back just RM180,000 to RM200,000. Compare that to Kuala Lumpur, where similar homes can cost anywhere from RM500,000 to RM1.6 million. This price difference is a game-changer for anyone looking to invest in property without the hefty price tag.
It's not just about buying; renting is a steal too. In areas like Sungai Petani, rental rates hover around RM12.00 to RM14.00 per square foot. This is a breath of fresh air compared to pricier regions in Kedah and the rest of Malaysia. For those seeking budget-friendly living, Alor Setar is a top contender.
But there's more to Alor Setar than just low prices. The city is buzzing with potential for growth. The Kedah state government is rolling out several infrastructure projects under the 11th Malaysia Plan. These initiatives aim to breathe new life into the city, making it a hotspot for future development.
Looking ahead, the Urban Redevelopment Act, expected to hit Parliament in 2025, is set to be a game-changer. This act is poised to boost urban development and lure more investments into Alor Setar. It's an exciting time for the city, with opportunities on the horizon.
For those considering a move or investment, Alor Setar offers a unique blend of affordability and growth potential. It's a city on the rise, with plenty of room for new beginnings.
Sources: Property Market Review 2016/2017 by Rahim & Co, Malaysia's Property Market Outlook for 2025 by Business News My, Alor Setar New Property Launches by NuProp
8) Nilai in Negeri Sembilan attracts investors with its educational institutions and rising student accommodation demand
Nilai in Negeri Sembilan is catching the eye of investors thanks to its booming educational scene and the rising need for student housing.
At the heart of this buzz is Nilai University, which stands out as one of Malaysia's top institutions. With a Tier-5 rating and 5-Stars in multiple categories from QS University Ratings, it's no wonder students are flocking here. This influx of students naturally boosts the demand for nearby accommodations, making it a prime spot for property investment.
Malaysia faces a significant shortfall in student housing, with a gap of about 25,000 bed spaces. This shortage is expected to grow, with a projected need for over 68,670 bed spaces by 2024. Nilai's strategic location near Kuala Lumpur International Airport and its improved transport links make it even more attractive for students and investors.
Investors are particularly interested in Nilai because of the potential for higher rental yields. Properties close to educational institutions like Nilai University often see increased demand, leading to better returns. The Malaysian government's push to promote Nilai as an educational hub, along with local plans for infrastructure development, shows a strong commitment to the area's growth.
With these factors in play, Nilai is not just a town with a university; it's a growing educational hub with a promising future for property investors. The combination of high-quality education and strategic location makes it a compelling choice for those looking to invest in student accommodations.
Sources: Nilai University, Government Report, Top Universities, Grand View Research
Everything you need to know is included in our Real Estate Pack for Malaysia
9) Bayan Lepas in Penang is booming due to its closeness to the industrial zone and high expatriate rental demand
Bayan Lepas is booming thanks to its closeness to the industrial zone.
The Bayan Lepas Free Industrial Zone is a magnet for foreign investments, especially in the electronics and electrical sectors. This influx of capital has created a wealth of job opportunities, drawing in a significant number of expatriates who prefer to live nearby. Expatriates are driving up rental demand in the area, making it a hot spot for property investors.
Expatriates love Bayan Lepas for its proximity to work and the abundance of amenities. This preference has led to higher rental yields here compared to other parts of Penang, signaling a robust rental market. The area is not just about convenience; it's about lifestyle, with everything from shopping to dining right at your doorstep.
Infrastructure is also getting a major boost. Projects like the Penang Light Rail Transit and the expansion of Penang International Airport are set to make the area even more accessible. Improved connectivity is a game-changer, attracting more property development and further fueling growth.
These developments are not just about better roads and transport; they are about transforming Bayan Lepas into a thriving hub. Property developers are taking note, with new projects popping up to meet the growing demand. It's a cycle of growth that's hard to ignore.
For anyone considering buying property in the country, Bayan Lepas offers a unique blend of opportunity and lifestyle. With its strategic location and ongoing developments, it's a prime spot for investment that promises both immediate and long-term returns.
Sources: Penang Property Talk, The Edge Malaysia
10) Iskandar Puteri Johor attracts investors with its strategic location near Singapore and promising capital appreciation
Iskandar Puteri in Johor is quickly becoming a prime spot for investors due to its strategic location near Singapore.
Being so close to Singapore, Iskandar Puteri offers a unique advantage where businesses can enjoy access to Singapore's thriving economy without the burden of high real estate costs. This proximity has attracted a steady stream of expatriates and workers from Singapore, which in turn has boosted rental yields, especially in areas near the city center and major transport routes.
Infrastructure developments have been a game-changer for the area. The High-Speed Rail (HSR) project connecting Singapore and Kuala Lumpur, along with the Rapid Transit System (RTS) Link, has greatly improved connectivity. These projects have not only made commuting easier but have also increased property demand in Johor Bahru, making it a hot investment destination.
Iskandar Malaysia has also seen a significant rise in foreign direct investment (FDI), with major players like Temasek and CapitaLand contributing to over RM111.4 billion in investments as of 2013. The manufacturing sector, in particular, has received substantial investments, further enhancing the region's economic appeal. The average gross rental yield in Iskandar Puteri is 5.50%, which is higher than in other Malaysian regions, thanks to its strategic location and affordable living costs.
With these developments, Iskandar Puteri is not just a place to live but a smart investment choice. The area is poised for promising capital appreciation, making it an attractive option for those looking to invest in property. The strategic location near Singapore, coupled with ongoing infrastructure projects, continues to draw interest from investors worldwide.
Sources: The Star, Conscientia Beam, Global Property Guide, The Star
11) Ipoh's Meru area attracts attention for affordable housing and strong potential for future appreciation
Ipoh's Meru area is becoming a hotspot for those seeking affordable housing with promising future value.
One standout development is Scientex Meru, which has seen a surge in property transactions. This project offers double-storey link terrace homes and budget-friendly condos, drawing significant interest from both buyers and developers. The buzz around Scientex Meru is a clear indicator of the area's growing appeal.
Meru's housing prices are notably lower compared to other parts of Perak, making it a prime choice for budget-conscious buyers. Here, you can find affordable options like double-storey link terraces and semi-detached homes, which are rare in other regions.
The area is also benefiting from government infrastructure projects, which include a hypermarket, government offices, and even an international theme park. These developments are setting the stage for future property appreciation, making Meru an attractive investment.
Developers are taking notice, with projects like Scientex Meru highlighting the area's strategic location and demand for affordable housing. This influx of investment is a positive sign for Meru's real estate market, suggesting a bright future ahead.
New amenities, such as a private clubhouse with lifestyle facilities in Scientex Meru, are enhancing the living experience. These additions make Meru a desirable place to live, further boosting its growth potential.
Sources: Official Launch of Scientex Meru – Ipoh, Unsold housing in Perak over 2,300 units, mainly from high rises priced over RM200,000, Residensi Meru, Bandar Meru Raya
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12) Cyberjaya is a prime real estate investment hub due to its tech status and affordable property prices
Cyberjaya is quickly becoming a prime spot for real estate investment.
One major reason is its status as a thriving tech hub, drawing in numerous tech companies and startups. Thanks to initiatives like the Cyberview Living Lab Accelerator Programme, startups are getting the support they need to succeed, especially with cutting-edge technologies like AI and robotics. This tech-friendly environment is a magnet for innovation and growth.
Another appealing factor is Cyberjaya's affordable property prices. The cost of residential properties here has stayed stable, and rental yields are notably higher than in other areas. This affordability, paired with the tech-driven atmosphere, is attracting more tech professionals to move in, boosting demand for homes.
Government efforts are also a big part of Cyberjaya's rise. The Madani Economy Framework shows the government's dedication to nurturing startups, which in turn enhances Cyberjaya's allure. Infrastructure and amenities are expanding, with rent-free workspaces and more educational institutions, all supporting the tech industry's growth.
For those considering a move, Cyberjaya offers a unique blend of modern living and career opportunities. The tech scene is vibrant, and the community is growing, making it an exciting place to be. The combination of affordable living and a bustling tech environment is hard to resist.
Investors are taking note of Cyberjaya's potential, seeing it as a place where innovation meets opportunity. The area's development is a testament to its promising future, making it a smart choice for those looking to invest in real estate.
Sources: Digital News Asia, The Edge Malaysia, Savills Asia Pacific Research
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.