IPOH, Nov 14 — The Valuation and Property Services Department (JPPH) today said Malaysia’s property market recorded moderate growth in the third quarter of 2025, with transactions continuing to rise despite a slight decline in volume.
Citing the Property Market Third Quarter 2025 report, JPPH director-general Abdul Razak Yusak said the transaction value increased by 12.5 per cent to RM64.39 billion compared to the same period in 2024.
However, Abdul Razak said the number of transactions saw a marginal drop of 3.5 per cent, with only 108,250 transactions recorded during the same period.
“Although Malaysia’s construction activity has begun to slow down, the increase in completed residential units has helped stabilise the national property market in the third quarter of 2025, giving buyers more options, especially for first-home purchases.
“The reduction of the Overnight Policy Rate (OPR) to 2.75 per cent has also enhanced buyer affordability, contributing to renewed momentum in the residential segment,” he said during a live briefing aired via Facebook.
He noted that the market is still expanding at a moderate pace amid increasingly challenging global economic uncertainties.
He added that continued government support under the Madani framework has been instrumental in maintaining stability across the sector.
“The measures under Budget 2025, including tax relief on interest for housing loans taken between January 1 and December 31 this year, for homes priced between RM500,000 and RM750,000, and the Step Up Financing Scheme under the Housing Credit Guarantee Scheme (SJKP), reflect the government’s commitment to encouraging first-home ownership,” he explained.
Abdul Razak also said that key highlights of Malaysia’s third quarter property market include the Malaysia House Price Index (MHPI), which recorded an annual growth of 0. 1 per cent, standing at 229.1 points, with the average home price at RM494,384 per unit.
“The construction activity for residential properties showed mixed performance such as completed homes increased, while housing starts and planned new supply recorded declines.
“New residential launches also fell to 11,533 units, with a sales performance of 14.0 per cent indicating cautious sentiment among developers,” he said.
He added that unsold completed residential units continued to rise to 28,672 units worth RM17.25 billion, up 6.5 per cent in volume and 4.9 per cent in value compared to the second quarter of 2025 (26,911 units worth RM16.44 billion).
“Unsold completed serviced apartments also increased marginally to 17,892 units valued at RM14.48 billion, up 0.1 per cent in volume and 0.4 per cent in value from second quarter this year(17,883 units worth RM14.43 billion),” he said.
“Meanwhile, the occupancy rates for business complexes improved to 78.6 per cent compared to 77.6 per cent a year earlier and private purpose-built office occupancy remained stable at 71.9 per cent compared to 71.6 per cent in third quarter of 2024,” he said.
Abdul Razak said the property market remains optimistic but cautious.
“While market developments have slowed, the Madani Economic Framework is expected to continue supporting demand and ensuring market stability.
“However, uncertainties in domestic demand and global economic challenges make the growth outlook cautiously optimistic,” he said.
He also noted that recent trade agreements between Malaysia and the United States signed during the Asean Summit have helped reduce earlier policy uncertainties, strengthening economic confidence and supporting more positive long-term prospects for the property sector.
“Under Budget 2026, the government will intensify strategic catalyst projects to stimulate property market growth, particularly in the residential segment.
“These include the People’s Residence Programme (PRR), Residensi Madani, Rumah Mesra Rakyat (RMR), PR1MA and major infrastructure developments expected to spur construction activity nationwide.
“Future development under the 13th Malaysia Plan (2026-2035) will also place strong emphasis on housing, including a target to build one million affordable homes over the 10-year period — a move seen as essential to expanding homeownership among low and middle income groups,” he explained.
He added that property industry players are also encouraged to capitalise on the Visit Malaysia Year 2026 campaign and enhancements to the Malaysia My Second Home (MM2H) programme.
“This campaign and programme are expected to boost demand for premium residential units and serviced apartments in major urban centres and tourism destinations,” he said.
