The Malaysian real estate market experienced a slight contraction in transaction volume during the first half of 2025, although the overall value of sales saw a modest increase. According to the National Property Information Centre, property transactions declined by 1.3% to 196,232 units compared to the same period in 2024. Despite this dip in volume, the total transaction value rose by 1.9% year-on-year to RM107.68 billion.
Residential properties continued to lead the market, accounting for 120,307 transactions valued at RM49.37 billion. The commercial segment followed with 21,260 transactions worth RM24.45 billion, while industrial properties recorded 4,148 transactions totaling RM14.25 billion. Agriculture land and development properties also contributed significantly, with 37,283 and 12,234 transactions respectively.
New residential launches dropped sharply by nearly 46%, with only 23,380 units introduced to the market. Sales performance remained subdued at 24%, and the overhang of completed-but-unsold homes worsened, increasing by 16.3% in volume and 17.9% in value. In contrast, the serviced apartment segment showed improvement, with unsold units declining by 8.6% and their value dropping 8.1%.
Finance Minister II Datuk Seri Amir Hamzah Azizan expressed confidence in the market’s resilience, citing continued government support and incentives. He emphasized that these measures are designed to benefit the public and strengthen the real estate sector’s performance amid global economic challenges. The average house price stood at RM490,376, with the national house price index recording a modest annual growth of 0.7%.