Malaysia’s residential property sector showed strong construction activity in the first quarter of 2025, marking a significant rebound in development momentum despite a dip in overall property transactions.
According to Abdul Razak Yusak, director general of the Valuation and Property Services Department (JPPH), the number of completed residential units surged by 30.2% to 9,329 units in Q1 2025, up from 7,168 units in the same period last year. Housing starts also recorded a robust 32.5% increase to 28,344 units compared to 21,391 units in Q1 2024.
“This reflects a strengthening development trajectory for the residential subsector,” said Abdul Razak during the release of the Property Market First Quarter 2025 report via Facebook Live.
However, the number of planned new developments dropped to 8,300 units from 11,000 a year earlier, suggesting a more cautious outlook for future supply.
Despite this, residential new launches more than doubled to 12,498 units in Q1 2025 from 5,585 units in Q1 2024, though sales performance remained modest at 10.8%.
On the transaction front, the market experienced a slight slowdown. Total property transactions declined by 6.2% to 97,772, while the total value dropped by 8.9% to RM51.42 billion, down from RM56.47 billion in Q1 2024.
Abdul Razak noted that while the market started slower, the strong pace of construction and rise in new launches are helping to sustain positive momentum. He attributed this to ongoing government support through housing initiatives like the Program Residensi Rakyat (PRR) and Projek Rumah Mesra Rakyat (RMR), as well as strategic infrastructure projects such as the Forest City Special Financial Zone and the Johor–Singapore Special Economic Zone.
The residential overhang—unsold properties completed and available for sale—recorded a slight increase, with 23,515 units worth RM15 billion, up 1.6% in volume and 7.7% in value from the previous quarter.
Meanwhile, the shopping complex sector saw a slight improvement, with occupancy rising to 79% from 78.8% a year earlier.
The Malaysian House Price Index (MHPI) for Q1 2025 stood at 225.3 points, with an average price of RM486,070 per unit and a modest annual growth of 0.9%.
Looking ahead, Abdul Razak expressed optimism that the property market will remain resilient, supported by continued construction activity and new housing supply.
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