market report

Malaysia Property Market Report 2026: Key Trends and Forecasts

Property Matching AI Editorial Team2026-03-153 Sources
Malaysia's property market in 2026 enters cautious stabilization after a decade-high 2024. The MHPI stands at 229.1 points (+0.1% YoY) with average national price RM 494,384. Price growth of 2-5% is forecast for 2026, led by Johor (RTS/SEZ catalyst), industrial Selangor, and premium KL residential.

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

  1. Industrial property boom: Demand for factory and warehouse space at 6-8% yield (driven by global supply chain diversification)
  2. Landed home premium: Undersupply of landed homes continues; 57.9% of overhang is high-rise
  3. Transit-oriented development: MRT3 corridor properties commanding 15-20% premium
  4. Green building certification: GBI/MyCREST increasingly required for new launches
  5. 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

Frequently Asked Questions

Will property prices go up or down in Malaysia in 2026?

Property prices in Malaysia are forecast to increase moderately by 2-4% nationally in 2026 (Juwai IQI, Knight Frank). Johor is forecast to outperform at 4-8% driven by RTS Link and JS-SEZ. Premium KL (KLCC, Bangsar, Mont Kiara) is forecast at 3-6%. Industrial properties offer 6-8% rental yields. Prices are unlikely to decline significantly given stable OPR and undersupply of landed homes.

Which state in Malaysia has the best property market in 2026?

Johor has the best overall property market in 2026 due to the RTS Link opening and the Johor-Singapore Special Economic Zone. Serviced apartments in JB posted 20.4% YoY growth in 2025. For stability and volume, Selangor remains Malaysia's top transaction state. For premium capital gain, KLCC and Bangsar in KL outperform.

Sources & References

  1. [1] NAPIC Malaysia — MHPI 229.1 points; 196,232 H1 2025 transactions (-1.3%); value RM 107.68B (+1.9%); 28,672 unsold unitshttps://napic.jpph.gov.my
  2. [2] Juwai IQI — National price growth forecast 2-4% for 2026; Johor 4-8%; premium KL 3-6%https://juwai.com
  3. [3] Bank Negara Malaysia — OPR maintained at 2.75%; stable financing environment for 2026https://www.bnm.gov.my
Malaysia
Kuala Lumpur
Selangor
Johor
Penang

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