Malaysia's property market stays stable in 1Q2026 with transactions near 90,000 units worth RM51.9b, says JPPH

PETALING JAYA (May 15): Malaysia's property market remained stable with moderate growth in the first quarter of 2026 (1Q2026), recording 89,966 transactions worth RM51.9 billion, according to the Valuation and Property Services Department (JPPH).

It said in its statement yesterday that transaction value declined a marginal 0.6% while volume fell 8% compared with 1Q2025 — though JPPH director general Abdul Razak Yusak noted that construction activity at the completion stage for residential properties and shop units remained robust, registering positive growth even as the broader construction trajectory softened.

"This resilient market activity reflects the industry's confidence in Malaysia's ongoing economic restructuring under the Madani Economy framework, amid the West Asian conflict and global economic uncertainties. Government initiatives and continuous support have strengthened the property market's growth trajectory and delivered sustained benefits to the public," he said at the launch of the 1Q2026 Property Market Report in Putrajaya.

Residential segment anchors market activity

The residential sub-sector continued to dominate overall property market activity, accounting for 58.8% of total transactions with nearly 53,000 deals worth more than RM22 billion.

Housing priced at RM300,000 and below remained the most active price band, with 27,209 transactions — accounting for more than half of all housing transactions in the quarter.

The Malaysian House Price Index rose 1.7% year-on-year to 235.2 points, with the national average house price at RM507,533 per unit.

Almost all states recorded positive price growth of between 0.3% and 7.2%, with the exception of Negeri Sembilan (-0.2%) and Sabah (-2.3%), while Perak held steady.

By property type, terraced and semi-detached houses led growth at 2.2% each, followed by high-rise units at 1.3%, while detached houses slipped 0.7%.

Supply pipeline shows mixed signals

On the supply front, completed housing units surged more than 30% to 12,905 units from 9,329 units in 1Q2025, while completed shop and stratified shop units more than doubled.

Planned new supply for housing and shop units also rose strongly by more than 50% to 12,852 units and 823 units respectively, and planned new supply for serviced apartments climbed to 6,961 units from 4,024 units a year ago.

New residential launches, however, moderated to 9,112 units from more than 12,000 units in 1Q2025, with a sales take-up rate of 11.5%. Completed serviced apartments delivered in the quarter also saw a sharp decline of more than 40% to 1,888 units versus the same period last year.

Overhang edges up

Unsold completed residential units rose 7.6% in volume to 32,801 units worth RM16.37 billion, though the value declined 7.7% from the preceding quarter. Unsold completed serviced apartments increased to 19,263 units valued at RM16.52 billion, from 18,752 units worth RM15.42 billion in 4Q2025.

Commercial segment holds firm

In the commercial segment, private purpose-built office occupancy edged up to 72.3% from 72% a year ago, while shopping complex occupancy held steady at 79%.

Outlook remains positive

Napic (National Property Information Centre) expects the market's growth trajectory to remain resilient, supported by government measures under Budget 2026 and the 13th Malaysia Plan, including an increase in the Housing Credit Guarantee Scheme allocation to RM20 billion to benefit 80,000 homebuyers, and an extension of the full stamp duty exemption for first-time homebuyers of properties priced up to RM500,000 through to end-2027.

Strategic infrastructure development and transit-oriented development initiatives are also expected to serve as longer-term growth catalysts for the property market.

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