Valuation and Property Services Department (JPPH) reported that Malaysia’s property market maintained stable performance with moderate growth in the first quarter of 2026, despite global economic uncertainties and geopolitical tensions.
According to the 1Q2026 Property Market Report released by JPPH, the market recorded 89,966 property transactions worth RM51.9 billion during the quarter. Transaction value eased marginally by 0.6% while transaction volume declined 8% compared with the corresponding period last year.
JPPH director general Abdul Razak Yusak said resilient market activity reflected continued confidence in Malaysia’s economic restructuring agenda under the Madani Economy framework, supported by ongoing government initiatives and policy support measures.
Residential Segment Continues to Lead Market Activity
The residential sub-sector remained the largest contributor to the overall property market, accounting for 58.8% of total transactions. Nearly 53,000 residential transactions were recorded during the quarter, with a combined value exceeding RM22 billion.
Affordable housing priced at RM300,000 and below continued to dominate market demand, contributing 27,209 transactions and representing more than half of all residential deals recorded in 1Q2026.
Malaysia’s housing prices also continued to trend upward, with the Malaysian House Price Index rising 1.7% year-on-year to 235.2 points. The national average house price stood at RM507,533 per unit.
Most states recorded positive house price growth ranging from 0.3% to 7.2%, although Negeri Sembilan and Sabah registered slight declines, while Perak remained unchanged.
By housing category, terraced and semi-detached homes led price growth at 2.2% each, followed by high-rise residential units at 1.3%. Detached homes recorded a slight contraction of 0.7%.
Construction and Supply Trends Show Mixed Momentum
On the supply side, completed residential units increased significantly by more than 30% to 12,905 units compared with 9,329 units in 1Q2025. Completed shop and stratified shop units also more than doubled during the quarter.
Planned incoming supply showed strong expansion, with planned housing units increasing by more than 50% to 12,852 units, while planned shop units rose to 823 units. Planned serviced apartment supply also climbed to 6,961 units from 4,024 units a year earlier.
However, new residential launches moderated to 9,112 units from over 12,000 units previously, while the sales take-up rate stood at 11.5%. Completed serviced apartment deliveries fell sharply by more than 40% year-on-year to 1,888 units.
Overhang Situation Continues to Rise
The number of unsold completed residential units increased 7.6% to 32,801 units valued at RM16.37 billion. Meanwhile, unsold completed serviced apartments rose to 19,263 units worth RM16.52 billion, highlighting continued supply absorption challenges in certain market segments.
Commercial Property Market Remains Resilient
Malaysia’s commercial property market remained relatively stable during the quarter. Occupancy rates for private purpose-built office buildings improved slightly to 72.3%, while shopping complex occupancy rates remained steady at 79%.
Positive Outlook Supported by Government Policies
National Property Information Centre (Napic) expects Malaysia’s property market to remain resilient moving forward, supported by measures announced under Budget 2026 and the 13th Malaysia Plan.
Key initiatives include the increase in allocation for the Housing Credit Guarantee Scheme to RM20 billion, which is expected to assist 80,000 homebuyers, as well as the extension of full stamp duty exemptions for first-time homebuyers purchasing homes priced up to RM500,000 until the end of 2027.
Long-term infrastructure development and transit-oriented development (TOD) initiatives are also expected to strengthen future property market growth.
What I Learned
- Malaysia’s property market remained relatively stable in 1Q2026 despite slower transaction growth and global economic uncertainties.
- Affordable housing below RM300,000 continues to drive the majority of residential demand nationwide.
- Residential properties remain the backbone of Malaysia’s property market, contributing almost 60% of total transactions.
- House prices are still recording moderate growth, especially for terraced and semi-detached homes.
- Supply activity is increasing, particularly for planned residential and serviced apartment developments, although new launches have moderated.
- Property overhang remains a concern, especially within serviced apartment segments where unsold inventory continues to rise.
- Commercial property occupancy levels show resilience, suggesting stable business activity and retail performance.
- Government incentives, infrastructure expansion and transit-oriented developments are expected to remain major catalysts supporting the sector’s medium- to long-term growth trajectory.
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