KUALA LUMPUR, Jan 26 — Malaysia’s property market delivered mixed results across residential, industrial, and commercial segments in the first nine months of 2025, with the industrial sector emerging as the clear outperformer, according to the Henry Butcher Perspective — Malaysia Property Outlook 2025 report.
The industrial segment continued to show strong momentum, recording growth in both transaction volume and value despite global economic uncertainties. Henry Butcher Malaysia chief operating officer Tang Chee Meng attributed this resilience to Malaysia’s solid trade performance, rising foreign and domestic investments, supportive government policies, infrastructure upgrades, and sustained demand from data centre and semiconductor-related industries.
These factors, he said, are expected to continue underpinning the sector’s performance into 2026, particularly in established industrial corridors across Selangor and the Klang Valley.
Nationally, industrial transaction volume rose 3.3% year-on-year to 6,525 units, while transaction value increased sharply by 14.6% to RM23.7 billion during the period under review.
Selangor remained the largest industrial market, accounting for 36% of total transaction volume (2,323 units) and 46% of total value, amounting to RM10.85 billion. Strong demand for industrial land in Selangor, particularly within mature hubs and growth areas such as the Subang area and Puchong, continued to drive activity.
Terrace factories formed the largest share of transactions, followed by sales of vacant industrial land, reflecting continued interest from manufacturers, logistics operators, and investors seeking scalable facilities and redevelopment potential.
Five states — Selangor, Negeri Sembilan, Kelantan, Sabah, and Sarawak — recorded growth in both transaction volume and value. Negeri Sembilan posted one of the strongest performances, with transaction volume rising nearly 20% and transaction value more than doubling to RM1.6 billion.
Johor saw a marginal dip in transaction volume but recorded a substantial increase in transaction value, indicating higher-value industrial deals, while Kuala Lumpur experienced higher transaction volume but lower overall value, reflecting smaller-sized or more selective transactions within the city.
Penang recorded a decline in industrial transaction volume, although transaction value improved slightly. Tang noted that Penang’s industrial sector remains fundamentally strong, supported by structured industrial planning and major infrastructure initiatives, including the Mutiara LRT Line and airport expansion projects.
Overall, the industrial sector’s strong performance continues to reinforce investor interest in factories in Puchong, industrial property in the Subang area, and well-connected industrial estates across Selangor, where infrastructure and labour accessibility remain key advantages.
While the commercial property sector recorded a slight decline in transaction volume nationally, transaction value rose significantly, indicating that higher-value properties dominated market activity in 2025.
According to Tang, commercial property transaction volume declined by approximately 2%, while total transaction value increased by 16% in the first nine months of the year.
In Selangor, commercial transaction volume fell modestly to 8,374 units, but transaction value climbed 8% to RM10.58 billion, supported by demand for well-located shop offices, retail lots, and strata commercial assets.
Johor also experienced lower transaction volume, but transaction value rose nearly 30%, driven largely by higher-priced shophouses in Johor Bahru, where double- and triple-storey units priced between RM600,000 and RM2 million formed a significant portion of transactions.
Kuala Lumpur stood out by recording growth in both transaction volume and value. A large share of transactions involved commercial property in KL priced above RM1 million, reflecting continued demand for prime assets near business districts and established commercial nodes, including areas surrounding office space in Bukit Jalil.
Penang, however, saw declines in both volume and value, with softer performance recorded in both Penang island and Seberang Perai.
Looking ahead, Tang expects the commercial property market to remain generally stable in 2026, with only minor fluctuations in transaction volume and value. However, certain segments — particularly serviced apartments — may see softer demand following the increase in stamp duty for foreign buyers to 8%, which is expected to have a greater impact on Kuala Lumpur, Penang, and Johor.
At the same time, the Visit Malaysia 2026 campaign is expected to provide support for retail and hospitality-related commercial assets, especially in established tourism and lifestyle destinations.
Overall, strong fundamentals continue to favour the industrial sector, reinforcing long-term demand for industrial land in Selangor, factory developments in Puchong, and industrial properties in the Subang area, while prime office and commercial assets in Kuala Lumpur remain resilient amid evolving market conditions.
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