KUCHING: Malaysia’s residential property subsector recorded significant growth in construction activity during the first quarter of 2025, despite a slight decline in overall transaction performance.
According to the Valuation and Property Services Department (JPPH) of the Finance Ministry, the number of residential units completed surged by 30.2 per cent to 9,329 units, compared to 7,168 units in the same period last year.
Concurrently, housing rose by 32.5 per cent to 28,344 units, up from 21,391 units in the first quarter of 2024.
“This indicates a strengthening development trajectory for the residential subsector.
“However, property transactions saw a marginal downturn.
“The volume of transactions declined by 6.2 per cent to 97,772, while the total value dipped by 8.9 per cent to RM51.42 billion, compared to 104,194 transactions worth RM56.47 billion in the corresponding quarter of 2024,” it said.
Commenting on the matter, Valuation and Property Services Director-General, Abdul Razak Yusak, said that although property transactions began on a slower note, the robust pace of construction activity and the increase in residential new launches have supported balanced growth and sustained positive momentum in 2025.
“The continuous government support through initiatives such as the Program Residensi Rakyat (PRR), Projek Rumah Mesra Rakyat (RMR), and strategic infrastructure development has been a key driver in accelerating construction activity.
“Government-led initiatives aimed at strengthening Malaysia’s global investment position, such as the Forest City Special Financial Zone, the Johor–Singapore Special Economic Zone (JS-SEZ), and the implementation of a duty-free zone in Pulau Satu, Forest City have started to demonstrate significant impact.
“The serviced apartment market in Johor Bahru, particularly in terms of overhang units, has shown positive signs, as the number reduced by 5.6 per cent in the first quarter of 2025 compared to the fourth quarter of 2024,” he said.
Residential new launches more than doubled to 12,498 units, up from 5,585 units in the same period of 2024.
However, the sales performance of these launches remained modest, registering at 10.8 per cent.
In terms of overhang, the residential segment recorded a total of 23,515 unsold completed units valued at RM15 billion, reflecting a marginal increase of 1.6 per cent in volume, and 7.7 per cent in value compared to the fourth quarter of 2024.
Year-on-year, however, the overhang showed improved momentum, with volume and value declining by 2.9 per cent and 9.0 per cent, respectively.
Serviced apartments also recorded positive developments, with overhang volume falling by 6.7 per cent to 18,246 units, and value down by 6.9 per cent to RM14.61 billion, compared to the previous quarter.
The occupancy rate for shopping complexes saw a slight increase, rising to 79.0 per cent in the first quarter of 2025 from 78.8 per cent in the preceding quarter.
Meanwhile, the Malaysian House Price Index (MHPI) for the period stood at 225.3 points, representing an average residential price of RM486,070 per unit.
The annual growth rate was recorded at 0.9 per cent.
Abdul Razak added that the property market is expected to remain sustainable and resilient, driven by ongoing momentum in construction and the increasing supply of newly launched residential units.
He also urged industry players and developers to remain vigilant amid global economic uncertainties and an evolving market landscape.
He further highlighted that the MADANI Government has introduced several catalytic measures under Budget 2025 to stimulate the property sector and the broader economy.
“These include individual income tax relief for housing loan interest payments and the introduction of the Step Up Financing Scheme under the SKJP, a government guarantee initiative to promote first-time homeownership among the younger generation.
“Special financial and infrastructure incentives under the Johor–Singapore Special Economic Zone (JS-SEZ), the Special Financial Zone in Forest City, and ongoing infrastructure developments are also expected to reinforce long-term property market growth,” he said.
