Malaysia Property Market Report 2026
1. Key Market Statistics
| Metric | Value | YoY Change | |---|---|---| | MHPI (Q3 2025) | 229.1 points | +0.1% | | Average national house price | RM 494,384 | Stable | | Total H1 2025 transactions | 196,232 deals | -1.3% | | Total H1 2025 transaction value | RM 107.68 billion | +1.9% | | Residential overhang (Q3 2025) | 28,672 units (RM 17.25B) | — | | OPR | 2.75% | Maintained |
2. State-by-State Highlights
| State | Key Driver | Price Forecast 2026 | |---|---|---| | Kuala Lumpur | Premium condo, urban renewal | +3-6% (premium) | | Selangor | Landed demand, MRT3 | +2-4% | | Johor | RTS Link, JS-SEZ | +4-8% | | Penang | Island supply squeeze, VLSI factories | +3-5% | | Sabah/Sarawak | Affordable, government projects | +1-3% |
3. Top 2026 Trends
- Industrial property boom: Demand for factory and warehouse space at 6-8% yield (driven by global supply chain diversification)
- Landed home premium: Undersupply of landed homes continues; 57.9% of overhang is high-rise
- Transit-oriented development: MRT3 corridor properties commanding 15-20% premium
- Green building certification: GBI/MyCREST increasingly required for new launches
- Short-term rental growth: Airbnb/digital nomad demand in KLCC and Penang
4. Challenges
- 28,672 unsold completed units (overhang) worth RM 17.25 billion
- 60% of developers have unsold inventory
- High-rise serviced apartments: oversupplied in Johor City and KL
- Bank loan rejection rates remain high (~40% for first-time buyers)
5. Forecast Summary
- Overall national price growth: 2-4% for 2026
- Johor: 4-8% (infrastructure premium)
- Industrial: 6-8% yield
- Premium KL (KLCC, Bangsar, MK): 3-6%
Key Takeaways
- Malaysia's market is stable-to-growing in 2026, not a bubble or crash
- Johor is the biggest growth story of 2026
- Industrial property offers the best risk-adjusted yield at 6-8%
- Overhang is concentrated in high-rise; landed homes are undersupplied
- Maintain OPR at 2.75% keeps mortgage costs predictable