Malaysia’s property transaction value drops 8.9% in 1Q, reports Napic

• Transaction volume also dropped by 6.2% year-on-year, with 97,772 transactions recorded in 1Q2025 against 104,194 in 1Q2024, Napic said.

KUALA LUMPUR (May 9): Malaysia’s property transaction value fell 8.9% in the first quarter of 2025 (1Q2025) to RM51.42 billion, compared to RM56.47 billion a year earlier, according to the latest data from the National Property Information Centre (Napic).

Transaction volume also dropped by 6.2% year-on-year, with 97,772 transactions recorded in 1Q2025 against 104,194 in 1Q2024, Napic said in a statement on Friday.

Despite the decline recorded in 1Q2025, the property market is expected to remain resilient, supported by positive momentum in the construction sector and a continued rise in newly launched residential units, said Valuation and Property Services Department director general Abdul Razak Yusak.

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However, industry players and property developers are urged to remain vigilant amid ongoing market dynamics, global economic challenges, and an uncertain external environment, he added.

Overhang units decline

According to Napic, new residential launches more than doubled to 12,498 units in 1Q2025 from 5,585 units a year earlier. However, sales performance remained modest at 10.8%.

The residential overhang recorded 23,515 units valued at RM15 billion, a slight increase of 1.6% in volume and 7.7% in value compared to 1Q2024.

“Nevertheless, against 1Q2024, the overhang performance witnessed better momentum, with the volume and value declining by 2.9% and 9.0%, respectively,” said Napic.

The serviced apartment overhang saw a 6.7% year-on-year decline in volume to 18,246 units, while its total value decreased by 6.9% year-on-year to RM14.61 billion.

“The serviced apartment market in Johor Bahru, particularly in terms of overhang units, has shown positive signs, as the number reduced by 5.6% in the first quarter of 2025 compared to the fourth quarter of 2024,” said Abdul Razak.

Meanwhile, shopping complexes recorded a slight improvement in occupancy, with the rate rising to 79.0% from 78.8% in the fourth quarter of 2024.

The Malaysian House Price Index for 1Q2025 stood at 225.3 points, reflecting an average house price of RM486,070 and an annual growth rate of 0.9%.

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