Housing demand drives Malaysia property market to 10-year high
Malaysia’s property market reached a decade high in 2025, recording total transaction values of RM241.87 billion, according to Housing and Local Government Minister Nga Kor Ming. The figure represents a 4.1% increase compared to 2024, with 416,413 transactions completed during the year, as highlighted in the 2025 Property Market Report.
Nga noted that the property sector remains a key pillar of the national economy, supporting nearly 200 related industries, including construction, finance, building materials and professional services. The strong performance underscores continued market activity and underlying demand across various segments.
The residential sub-sector led growth, expanding by 5.9% in 2025. Meanwhile, the Malaysian House Price Index (MHPI) rose by a moderate 2.6%, reflecting a stable pricing environment. This suggests that while demand remains healthy, price increases are still manageable, contributing to overall market resilience.
To further strengthen the sector, the Ministry of Housing and Local Government (KPKT) is rolling out reforms focused on governance, project delivery and buyer protection. Among the key initiatives is the aim to achieve zero sick housing projects by 2030.
Measures include tighter audit mechanisms for the Housing Development Account (HDA) to ensure proper fund usage, enhancements to the Housing Integrated Management System (HIMS) for real-time project monitoring, and expansion of the TEDUH platform to allow buyers to report developer non-compliance.
In addition, the government is drafting the Real Estate Development Act (RPDA) to broaden regulatory oversight, including projects on commercial land, while the implementation of e-SPA is expected to streamline transactions and reduce delays.
Nga emphasised that future efforts will go beyond transaction growth, focusing on improving quality, efficiency and liveability. The government remains committed to ensuring accessible, safe and sustainable housing for Malaysians while supporting long-term sector growth.
