In the first half of 2024, Malaysia’s property market experienced significant growth, reaching its highest transaction value and volume in five years. According to the National Property Information Centre’s (NAPIC) Property Market Report, the total value of property transactions was RM 105.65 billion ($22.19 billion), with 198,906 deals completed. This marked an 8% increase in volume and a substantial 23.8% rise in value compared to the same period in 2023.
Drivers of growth in Malaysia’s property market
The robust rebound of Malaysia’s property sector in 2024 can be attributed to several factors. These include a strong national economy, government initiatives supporting homeownership, and ongoing infrastructure and trade developments. As Malaysia’s gross domestic product (GDP) and household income levels rise, there is an increasing demand for property, leading to growth in both the value and volume of property transactions.
This resurgence is expected to continue in the second half of the year, with projections of further price increases, growth in transaction numbers, and a reduction in the residential overhang.
Residential sector leads the property market
In the first half of 2024, residential properties were the main focus in Malaysia’s real estate sector, making up over 22% of the total transaction volume. Selangor stood out as the top-performing region, representing 22.3% of all residential transactions and 30.6% of the total transaction value.
The residential market experienced a 6.1% increase in volume and a 10.4% increase in value year-on-year, indicating a sustained demand for homes. The decrease in residential overhang, which refers to a reduction in unsold properties, also reflects the market’s recovery, with the number of unsold units decreasing by 12.3% in volume and 19.5% in value.
Affordable homes remain in high demand
In the first half of 2024, affordable homes priced below RM 1 million ($210,000) were the best-selling properties, constituting more than half of all transactions. This strong demand for affordable housing indicates increased confidence in the market, with nearly 6,000 more units sold compared to 2023. Conversely, high-end properties priced above RM 1 million ($210,000) accounted for only about 8% of total transactions, suggesting a preference for more affordable housing options among buyers.
Opportunities for foreign investors in Malaysia
For foreign investors, Malaysia’s real estate market presents a unique opportunity as the country’s economic recovery strengthens. There is a growing demand for both affordable and high-end properties, especially in key areas such as Selangor, Johor, and Kuala Lumpur. This makes the Malaysian property market a diverse investment option. Investors can take advantage of the government’s ongoing efforts to stimulate the housing market through infrastructure development and supportive policies aimed at boosting homeownership and economic growth.
As Malaysia’s property sector recovers and expands, foreign buyers and investors can anticipate a favorable investment environment in the coming years.
