Malaysia Residential Real Estate Market Size

Malaysia Residential Real Estate Market Analysis

The Malaysia Residential Real Estate Market size is estimated at USD 22.41 billion in 2024, and is expected to reach USD 29.84 billion by 2029, growing at a CAGR of 5.90% during the forecast period (2024-2029).

• In 2022, Malaysia's residential real estate market recovered with increasing demand skewed toward cheap housing. Due to the possibility of strong demand for residences among the young generation, the developers are cautiously optimistic about property prospects in the medium to long term.
• Malaysia's residential real estate market performed less well than projected in the first quarter of 2021. The resurgence of COVID-19 infections and the reimposition of strict Movement Control Order (MCO 2.0) requirements are two significant factors for the decreased performance.
• According to the Malaysia Property Market Index, the total median asking price in four main Malaysian markets (Kuala Lumpur, Selangor, Penang, and Johor) fell by -1.79% Y-o-Y in Q1 2021. Subsale residential property market saw high Y-o-Y demand growth of +19.2% in the first half of 2021. 
• Increased innovation and a stronger focus on digital solutions are two good outcomes of a pandemic-stricken property business. By engaging with buyers through online activities, key property players have expedited their efforts to advertise products.
• Due to the inability to inspect properties in person due to the COVID-19 induced lockdowns, property buyers have shifted their focus to online browsing, fueled by substantial discounts offered by Malaysian developers for newly launched properties.
• Furthermore, the government's Home Ownership Campaign (HOC) was extended until December 2021. During Q1 2021, the total property market had a -5% Y-o-Y reduction in median asking prices. However, demand for subsale properties in Kuala Lumpur increased by 8.1% Y-o-Y in Q1 2021.