KUALA LUMPUR (Sept 4): Malaysia’s property market softened in the first six months of 2025 as transactions volume fell while housing developers withheld launches amid modest sales and rising overhang. Volume slipped 1.3% to 196,232 transactions in the first half when compared to the same period in 2024, according to the National Property Information Centre (Napic) report released on Thursday. Transaction value, meanwhile, rose 1.9% year-on-year RM107.68 billion. Moving forward, the country’s real estate sector is expected to extend its recovery momentum with the ability to absorb global economic challenges through continued government support, said Finance Minister II Datuk Seri Amir Hamzah Azizan. “I am confident that all the commitments and incentives implemented by the government will benefit the people while helping to drive the real estate market to achieve stronger performance,” Amir Hamzah said, according to a text of his speech at the report’s launch. The residential sub-sector continued to dominate nationwide activity, recording 120,307 transactions worth RM49.37 billion in the first half, followed by the commercial segment with 21,260 transactions valued at RM24.45 billion.’ Development land and other properties registered 12,234 transactions worth RM10.98 billion while the industrial segment saw 4,148 transactions worth RM14.25 billion, and there were 37,283 agriculture land transactions worth RM8.63 billion. New residential launches fell nearly 46% to 23,380 units while sales performance remained modest at 24%. The overhang of homes worsened, with the number of completed-but-unsold residences rising 16.3% in volume to 26,911 units and 17.9% in value to RM16.44 billion. However, the overhang situation of serviced apartments improved with 17,883 units unsold, a decline of 8.6% from the end of 2024. The value of overhang properties declined 8.1% to RM14.43 billion when compared to the end of last year. The Malaysian house price index recorded annual growth of 0.7% with the average house price at RM490,376 per unit.