market report

Malaysia Property Price Forecast 2026: Will Prices Go Up or Down?

Property Matching AI Editorial Team2026-03-152 Sources
Malaysian property prices are forecast to increase moderately at 1-5% in 2026. MHPI grew 3.3% in 2024, 0.7-1% in 2025, and is expected at 2.5-5% in prime areas for 2026. Infrastructure-driven areas (JB/RTS, MRT corridors) outperform. Overhang of 26,911 units keeps high-rise prices suppressed.

Malaysia Property Price Forecast 2026

1. Key Statistics and Trends

  • MHPI growth 2024: 3.3% (decade-high activity)
  • MHPI growth 2025: 0.7-1% (stabilization)
  • 2026 forecast: 2.5-5% in prime areas; 1-3% national average
  • Transaction value H1 2025: RM 107.68 billion (+1.9% YoY)
  • Q3 2025 transaction value: +12.5% YoY (shifting to premium assets)
  • Unsold units: 26,911 (RM 16.44 billion) mid-2025

2. State-by-State Price Forecast 2026

| State | Forecast Growth | Key Driver | |---|---|---| | Johor | 4-8% | RTS Link, JS-SEZ | | KL (Premium) | 3-6% | KLCC, Bangsar, MK demand | | Penang | 3-5% | Island supply squeeze | | Selangor | 2-4% | MRT3, SARP, landed demand | | Sarawak/Kuching | 4-8% | Digital economy transformation | | National average | 1-3% | Overhang pressure |

3. Why Prices Won't Crash

  • OPR stable at 2.75%: Affordable financing continues
  • GDP growth 4.5-5.5%: Positive economic backdrop
  • Landed homes undersupplied: Strong price floor for terraces
  • Infrastructure pipeline: MRT3, RTS, SARP generate real demand

4. What Could Suppress Prices

  • 26,911 unsold high-rise units creating competition
  • High loan rejection rates (31-45% for RM 500K-700K range)
  • Escalating construction costs reducing developer margin, limiting launches

5. Segment Forecast Summary

| Segment | Price Trend 2026 | |---|---| | Landed freehold (Klang Valley) | +3-5% | | Transit-linked condos (MRT) | +3-6% | | Non-transit high-rise | 0-2% | | Industrial property | +3-5% (rents) | | JB CBD / RTS corridor | +5-10% |

Key Takeaways

  • National average: modest 1-3% price growth forecast for 2026
  • Johor and Kuching are the standout outperformers (4-8%)
  • Premium KL (KLCC, Bangsar, MK) at 3-6%
  • High-rise non-transit: zero to minimal growth
  • Landed freehold continues to outperform due to undersupply

Frequently Asked Questions

Will property prices increase in Malaysia in 2026?

Yes, moderately. National average property price growth is forecast at 1-3%, with prime areas reaching 2.5-5%. Johor (RTS Link, SEZ) is the top performer at 4-8%. Premium KL (KLCC, Bangsar, Mont Kiara) is forecast at 3-6%. Non-transit high-rise condos may see 0-2% growth. The property market is expected to appreciate steadily, not crash or spike dramatically.

Where will property prices increase the most in Malaysia in 2026?

Johor Bahru (RTS Link + JS-SEZ) leads with 4-8% forecast growth, driven by imminent cross-border connectivity. Kuching Sarawak (digital economy hub, 4-8%) is the other standout. Premium KL locations (KLCC, Bangsar, Mont Kiara) forecast 3-6%. Transit-linked condos along MRT corridors nationwide are expected to outperform their non-transit equivalents.

Sources & References

  1. [1] NAPIC Malaysia — MHPI 2024: +3.3%; 2025: +0.7-1%; H1 2025 transaction value RM 107.68B (+1.9%); 26,911 unsold unitshttps://napic.jpph.gov.my
  2. [2] Juwai IQI / Knight Frank — 2026 national property price growth forecast 1-3%; prime areas 2.5-5%; Johor 4-8%https://juwai.com
Malaysia

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