This article first appeared in City & Country, The Edge Malaysia Weekly on January 12, 2026 - January 18, 2026
We continue with the second part of our annual local consultants’ poll. Property experts highlight the sector’s resilience in 2025 and the opportunities for investors and homebuyers this year. They advise conducting careful studies and planning to ensure the best results.
Metro Homes Realty Bhd
Executive director
See Kok Loong
The domestic property market in 2025 remained steady overall, though selective in nature. Local demand was moderate as most Malaysians continued to be cautious due to the rising cost of living and tighter loan approvals. Nevertheless, genuine homebuyers and upgraders continued to support activity in key urban centres such as Kuala Lumpur, Penang and Johor Bahru.
This year, the property market should see a more positive tone emerging, underpinned by improving sentiment and gradual recovery in the broader economy. Industrial properties will continue to be a standout performer, particularly in strategic and well-connected areas supported by logistics, ports and highway infrastructure.
The affordable housing segment will remain resilient as it is underpinned by real end-user demand and government housing initiatives. Johor Bahru should continue to shine, fuelled by the spillover of investment interest from Singapore and ongoing cross-border integration projects. Developers focusing on quality, value and sustainability will have a competitive edge.
Investors should look at 2026 as a favourable entry point. By then, global uncertainties such as the US-China trade friction and tariff adjustments will likely have been priced into the market. As long as the artificial intelligence (AI) and technology-driven economic momentum continues and the global liquidity cycle remains accommodative, Malaysia and the Southeast Asia region will be well positioned for growth.
Malaysia’s strategic location, relatively low property prices and improving infrastructure — especially through major transport and industrial corridors — make it an attractive destination for both investors and homebuyers seeking long-term appreciation and stable rental returns.
To further stimulate the property sector, Malaysia should streamline the approval process for foreign professionals and investors under employment passes, MM2H (Malaysia My Second Home) and other legitimate visa categories. Currently, administrative hurdles make it difficult for foreigners to work or invest here, dampening long-term demand.
Taking a cue from Singapore, Malaysia should make it easier for companies to support employment pass applications and for legitimate foreign participants to contribute productively. At the same time, strong enforcement is vital to ensure compliance and maintain integrity. Balancing openness with sound governance will enhance Malaysia’s competitiveness and create a more dynamic, sustainable property market.
Nawawi Tie Leung Real Estate Consultants Sdn Bhd
Executive adviser
Eddy Wong
There was a year-on-year (y-o-y) decrease of 2.7% in volume and 0.3% in value for the residential market in 9M2025. The last time there was a contraction in the number and value of transactions for the first three quarters of the year was in 2020, due to the pandemic. This shows that the residential market has turned cautious in view of the uncertainties in the economic outlook, arising from the imposition of trade tariffs and the trade war between the US and China.
There were also fewer new launches compared to the previous year, while overhang increased about 30% y-o-y in 3Q2025. In fact, the overhang units have been on a steady increase since its bottom in 3Q2024.
The residential sector that is expected to maintain a healthy demand are starter homes priced below RM500,000.
Johor Bahru is currently a property hotspot due to the Johor Bahru-Singapore Rapid Transit System (RTS) Link, which is expected to be fully operational by Jan 1, 2027. The federal government’s initiative to develop the Johor-Singapore Special Economic Zone (JS-SEZ) also strengthened investors’ confidence in Johor as Malaysia’s strategic gateway. For 1H2025, the JS-SEZ recorded RM37.1 billion in approved investments, representing 66% of Johor’s total investments. The JS-SEZ has also attracted a further RM29 billion in new investment commitments. We expect the market in Johor Bahru to remain vibrant in 2026.
In the Klang Valley, properties located along LRT3 will benefit from the improved accessibility and connectivity, and are expected to see some price appreciation due to the improved demand.
The government proposed a special tax deduction to encourage the conversion of commercial properties into residential use. The proposed rate is 10% of qualifying renovation and conversion expenditure, and it is limited to a maximum of RM10 million. This will help to reduce the vacancies in commercial buildings and at the same time increase the supply of residential properties.
The existing stamp duty waiver on transfer deeds and loan agreements for first-time homebuyers for properties priced at RM500,000 and below has been extended for two years to December 2027, which would help to encourage those considering to buy a property to make that all-important decision before the end of 2027.
However, some homebuyers need additional assistance if they are currently renting, as they have to pay their existing rental in addition to their housing loan interest while waiting for their property to be constructed, if they purchase a property that is under construction.
This is where the developer interest bearing scheme (DIBS) can come in useful. It would be good if the government could consider reallowing this scheme, if only for first-time homebuyers.
Firdaus & Associates
Group managing director
Prem Kumar
The Malaysian property market continued to be resilient in 2025 with no specific negative trends. There were a handful of sweet segments driven primarily by technology, infrastructure and transport.
The trajectory of the economy for 2026 is poised to continue its trend of recent years. With various trade partnerships and collaborations coming into full effect, the impact on the property market will be significantly positive. With no economic shocks anticipated, the decisions to commit to new and additional business investments will face reduced challenges. This will translate into quicker decisions in terms of property purchases and contribute to more robust property market activities.
The Malaysian property market has reached a high level of maturity. The property offerings are plentiful, giving investors and homebuyers wide-ranging options. The sub-sale or secondary market has attracted substantial interest from both investors and homebuyers.
A major focus is the former Sungai Besi Airport. It is anticipated to be a major development initiative that will move beyond the traditional mindset of property development centred on conventional landed homes, apartments and shopoffices, and instead embrace forward-looking initiatives such as environmental, social and governance (ESG) principles, wellness-focused design and IT-driven solutions, among others.
Niche developments, both current and upcoming, are set to draw strong interest. AI- and technology-driven projects, supported by robotics, will be the real game changers, positioning Malaysia’s property market as a regional leader in innovation.
KGV International Property Consultants
Executive director
Anthony Chua
The Malaysian property market held firm, supported by the country’s economic strength in 2025. Transaction volumes through 3Q2025 were largely unchanged compared to the same period in 2024, indicating steady activity. The growth in development land deals suggests that developers are actively acquiring land and positioning for future projects. These include the sales of the Corus Hotel and the Cheras Velodrome site.
Infrastructure remains a key driver moving forward. The timely MRT3 Circle Line (with compulsory acquisitions underway) promises to alleviate congestion and unlock previously underserved areas in the city centre. The historical impact of such connectivity is undeniable; properties within 400m of a station can expect capital and rental appreciation. As a result, these areas are set to become new hotspots. Potential transit-oriented development hotspots include Titiwangsa, Salak Selatan and Old Klang Road.
The industrial sector continues to be a strong performer. The northern part of Selangor and southern part of Perak are slowly shaping into an automotive corridor, anchored by the Perodua plant in Serendah and the Proton plant in Tanjong Malim. The Chery plant in Lembah Beringin (Beringin High-Tech Auto Valley) and the BYD assembly plant in KLK TechPark in Tanjong Malim are two new additions to this corridor. It is hoped that these developments will attract more manufacturing plants, supply chain activities and supporting industries to Hulu Selangor.
Global cities face degradation from ageing infrastructure and socio-environmental stress. Urban redevelopment, therefore, is a strategic intervention to promote densification by revitalising underutilised areas that have fallen into dilapidation. The goal is to unlock the intrinsic value and potential of blighted areas within a city, allowing the land to achieve its highest and best use.
However, effective urban renewal demands more than just financial projections; it hinges on achieving equitable distribution among all stakeholders and ensuring proper oversight. The ultimate aim is to facilitate sustainable development that benefits existing communities, carefully balancing the rights of developers and property owners with the creation of a harmonious and inclusive society.
The Malaysian property landscape in 2026 is expected to remain steady, supported by ongoing infrastructure projects, rising foreign investments in industrial real estate and continued efforts to expand affordable housing. These initiatives provide a foundation for growth and improved market confidence. While the outlook is generally positive, performance is likely to vary across different regions and asset classes, making strategic planning and careful investment decisions essential for sustainable progress.
PA International Property Consultants Sdn Bhd
Group managing director
Subramaniam Arumugam
Malaysia’s property market held largely steady through 2025, reflecting a year of marginal shifts. The National Property Information Centre’s (Napic) data for the third quarter showed a slight dip in transaction volumes. Yet, overall transaction value edged higher, signalling sustained purchasing interest despite a softer loan approval rate.
Looking ahead, 2026 is expected to mirror the stable performance of 2025. Industrial real estate, especially data centres and logistics hubs, will continue to lead, though growth may be tempered slightly as regulations evolve and the sector matures.
The residential market is set to remain resilient, anchored by demand from first-time buyers and the mass market. Developers are responding with more efficient layouts that fit additional bedrooms into smaller units, while premium projects emphasise flexible private spaces and greener design. Tourism-related properties should also benefit from Visit Malaysia 2026 (VM2026), driving interest in hotels, glamping concepts and short-stay accommodations.
Major infrastructure catalysts will shape opportunities. Investors are expected to continue targeting JS-SEZ assets, as well as properties along new and upgraded transport corridors, including the LRT Shah Alam Line, the newly launched Johor Bahru-Kuala Lumpur Electric Train Service (ETS) route, the RTS Link, and transit-oriented developments connected to the upcoming East Coast Rail Link (ECRL) in Terengganu. Additional openings lie in emerging data centre locations outside Johor — following the state’s freeze on small-scale approvals — as well as in areas surrounding proposed ports such as Pulau Carey, Lumut Maritime Industrial Park and the Maharani Freeport in Muar.
For homebuyers, government-led affordable housing programmes remain key, particularly in well-connected areas near established commercial hubs.
To further strengthen the market, industry players are asking for a redefinition of housing affordability that accounts for both financial and social factors. They also call for more disciplined supply planning to prevent oversaturation and for targeted fee reductions to ease construction costs for developers building affordable homes — support that could ultimately raise product quality and stimulate demand.
CBRE | WTW
Group managing director
Tan Ka Leong
Last year was resilient, with the market absorbing persistent headwinds and remaining broadly stable across most sectors, despite rising living costs, tariff adjustments and ongoing fiscal restructuring efforts.
Overall, transaction volume as at 9M2025 softened slightly by 2.8%. However, total transaction value increased by 5.6%, driven primarily by development land transactions, supported by increased landbanking by developers. The industrial sector also contributed, bolstered by strong investment confidence, underpinned by supportive government initiatives at both state and national levels.
Looking ahead to 2026, moderate improvement is anticipated in select areas and segments of the market, while broader conditions are expected to remain stable.
Industrial assets are expected to continue outperforming, underpinned by strong structural demand, improved infrastructure and sustained investment.
Hospitality assets could also benefit from a recovering tourism sector, supported by the VM2026 campaign, extended visa-free travel policies and expanded flight connectivity throughout Malaysia.
Homebuyers can benefit from ongoing township planning that delivers well-planned, amenity-rich communities designed to meet core needs such as affordability, liveability, wellness, connectivity and safety. These developments provide practical daily conveniences, robust community facilities, improved access to services and transport, and a secure living environment.
Opportunities are also available in the affordable housing segment, where initiatives such as Residensi Wilayah and Rumah Selangorku widen access to quality homes, support first-time buyers and encourage demand in emerging growth corridors.
Meanwhile, corporate investors are drawn to government supported high-growth, high-value segments, including industrial, logistics and commercial assets, where long-term yields, capital growth and portfolio expansion opportunities are more attractive compared to the residential segment, backed by initiatives such as Rancangan Malaysia Ke-13 and Budget 2026.
Realignment of the residential market to better reflect current demand, including affordable options, will help ensure a more balanced and sustainable supply. These measures can optimise asset potential, enhance market activity and area vibrancy, and strengthen the wider economic ecosystem with positive spillover effects across residential, commercial and industrial segments.
For the commercial office sector, efforts should focus on repositioning and repurposing underutilised assets, rather than continuing to build new commercial assets that could increase the overall vacant spaces in the commercial sector.
Rahim & Co International Sdn Bhd
Director of research and consultancy services
Sulaiman Saheh
Property transaction volumes moderated in 2025 after a robust performance in 2024. The change reflects a market adjustment following the exceptionally high base of the previous year, as fundamentals remained strong in a continuing challenging environment.
As for 2026, the market is expected to maintain a gradual momentum, supported by sustained economic stability and policy continuity. Programmes like VM2026 should reinforce hospitality, retail and tourism-related real estate, particularly in Penang, Langkawi, Melaka, Sabah and Johor’s coastal regions.
Industrial properties will continue to perform as a multitude of supportive government policies is to unfold, such as the 13th Malaysia Plan and the New Industrial Master Plan 2030. The residential sector will continue to focus on the affordable segment, while some strategic high-end developments may also share the limelight. ESG-compliant developments, transit-oriented housing and select commercial assets with strong hybrid, flexible or experiential elements are also expected to perform well, especially in established urban centres in the Klang Valley and Johor.
Opportunities for investors lie in industrial parks, logistics hubs, green-certified townships, repurposed commercial assets, data-infrastructure-linked properties, and hospitality developments catering to rising tourism and foreign interest. These are especially in locations benefiting from new connectivity, infrastructure upgrades or near major economic corridors — facilitated by LRT3, ECRL and the RTS.
To further strengthen the market, the priority should not necessarily be on introducing more policies but to improve the clarity, consistency and execution of existing measures, particularly those targeting abandoned projects, affordable housing delivery, buyer protection, tenancy regulation and financing accessibility for first-time buyers.
We need to support adaptive reuse strategies for ageing office and retail stocks; encourage ESG and smart-development compliance; and better align property planning with industrial, digital and tourism sector growth.
Malaysia’s property sector stands on stable ground, moving towards a more disciplined, sustainable and value-driven trajectory with opportunities increasingly defined by regional diversification, infrastructure readiness and long-term liveability rather than speculative sentiment.
Metro REC Sdn Bhd
Managing director
Ng Weng Yew
The domestic property market generally performed well in 2025. The darling of 2025 was industrial and development land, fuelled by demand from the manufacturing, logistics and data centre sectors. Johor emerged as the clear winner, experiencing a pent-up development push due to the JS-SEZ.
The 2026 property market may face its stiffest test in regard to buyers’ sentiment as the full impact of US-imposed tariffs is felt and the global economy potentially enters its most challenging period. VM2026 will also serve as a catalyst for our economy this year.
Given the current global flow of investments, sectors expected to perform well will likely include industrial real estate (logistics, warehouses and data centres) and hospitality-related properties. Developers are expected to continue their land-hoarding activities. Monitoring economic indicators and new government policies will be crucial for property investors.
Bandar Malaysia and Iskandar Malaysia will be opportunities for investors and homebuyers. The 486-acre Bandar Malaysia is set to be transformative and iconic.
The Iskandar Malaysia region is expected to experience a further surge in new residential high-rise and commercial developments. The upcoming LRT alignment, which will connect to the RTS, is particularly noteworthy. Additionally, foreign demand, especially from Singaporeans, will enhance the property appeal in Iskandar Malaysia.
Beyond the Madani payouts, the government could do more to address property affordability and cost-of-living issues. This includes introducing financial incentives for affordable housing and unsold completed properties — such as additional stamp duty exemptions for first-time homebuyers; streamlining regulatory processes and establishing clear, transparent policies regarding property taxes and state-level regulations; and reducing development-related charges imposed by state and local authorities.
The government could also provide incentives for developers to incorporate sustainable practices and green technologies to attract environmentally conscious buyers, and review restrictions on foreign property ownership to encourage foreign investment, particularly to boost demand in the upmarket residential and commercial segments.
VPC Alliance Malaysia
Managing director
James Wong
The domestic property market continued its upward momentum in 2025, supported by the 4.4% expansion in the Malaysian economy up to 3Q2025, approved investments increasing to RM190.3 billion by 1H2025, the strengthening of the Malaysian ringgit and big increase in tourist arrivals.
It can be said that the 2025 property market had fully recovered with most developers achieving sales beyond their targets and developers embarking aggressively on buying sprees to replenish their land bank. The number of unsold residential units is also at its all-time low. However, we understand that housing loan approvals by banks have slowed down as many house buyers are not eligible for the loans due to affordability issues.
Johor is the current hotspot of the property market. It has the highest approved investment value of RM56 billion. It also has the highest concentration of data centres in Malaysia. Johor is indeed enjoying a property boom, with the implementation of the JS-SEZ and the completion of the RTS linking Johor Bahru with Woodlands, Singapore. Property values in Johor Bahru have even overtaken the Klang Valley’s.
As the property market is not homogenous, the property market sectors are mixed. Landed residential and industrial properties continue to be in great demand. With increasing tourist arrivals with visa-free entries from China and India, hotels have seen high occupancies and revenues.
Offices remain in oversupply and continue to be a tenant’s market, while the retail sector is mixed. Megamalls in Kuala Lumpur, Johor Bahru and Penang are performing well, but older neighbourhood malls are struggling.
Apart from traditional housing, developers should also tap into student housing near private colleges and universities, and staff and workers’ accommodation within industrial estates, where there is a lot of latent demand.
Developers are also urged to venture into developing retirement villages and senior housing with aged care facilities, as Malaysia is now considered an ageing society with 8.1% of its population (equivalent to 2.7 million) being 65 years and above.
We expect the property market to remain resilient in 2026 as the economy continues to improve.
Zerin Properties Sdn Bhd
Group CEO
Previndran Singhe
The market demonstrated resilient, value-driven growth despite a marginal softening in transaction volume. Capital was selective, concentrating on assets with strong fundamentals. The industrial, logistics and data centre sectors led performance, fuelled by manufacturing and digital investments.
The 2026 outlook is cautiously optimistic, with activity concentrated in regions supported by clear economic catalysts and rising high-value job creation. Johor is expected to lead, driven by the JS-SEZ and the RTS Link, strengthening the industrial, logistics and data centre segments. Penang will maintain depth through continued expansion of its electrical and electronics (E&E) and high-tech manufacturing ecosystems, sustaining demand for industrial and logistics assets.
In Greater KL, growth will be shaped by the upcoming MRT3, a strengthening digital ecosystem and expanding advanced manufacturing and aerospace clusters.
Overall, industrial, logistics and data centre assets will remain standout performers, while hospitality assets will benefit from VM2026.
Residential demand is expected to stay firm across Johor, Penang and Greater KL, supported by stable household formation and a sustained appetite for affordable, connected communities.
Opportunities continue to converge around assets supported by structural economic drivers. Industrial and logistics properties in Johor, Penang and Negeri Sembilan remain in demand, alongside rising interest in data centre-aligned land bank driven by accelerating digital investment.
In hospitality, destination hotels and well-located assets with potential for rebranding or repositioning are gaining traction. Green-certified commercial buildings with strong tenant profiles also continue to show resilient performance.
For homebuyers, activity is strongest in affordable housing, connected developments and mature landed townships with established amenities.
Priorities include streamlining planning and development approvals, particularly for industrial parks, data centre infrastructure and urban regeneration projects, to shorten delivery timelines and improve investment clarity. Addressing legacy high-rise overhang through targeted repurposing or phased support for first-time buyers will help rebalance supply.
Policy consistency and sustained investment in catalytic, employment-generating developments will remain central to maintaining market momentum into 2026 and beyond.
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