Malaysia Property Deals Hit RM105.12 Billion In 1H2026

Malaysia Records 187,320 Property Transactions

Malaysia’s property market remained broadly resilient in the first half of 2026, recording 187,320 transactions with a combined value of RM105.12 billion.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the performance was supported by the country’s broader economic growth, with gross domestic product expanding 6.0% in the second quarter.

The figures show that property activity remains substantial even as individual segments perform differently.

Residential Property Still Dominates The Market

Residential property accounted for 59.3% of all property transactions in 1H2026.

A total of 110,998 residential transactions were recorded during the period.

In value terms, residential property contributed RM47.11 billion, equivalent to 44.8% of total property transaction value.

This confirms that housing remains the largest component of Malaysia’s property market by both activity and capital deployed.

However, the difference between transaction volume and value share also reflects the higher average values found in commercial and industrial property.

For homebuyers, the national numbers show continued market participation, but they do not mean demand is equally strong across every location and price segment.

Average Malaysian House Price Reaches RM506,317

The Malaysia House Price Index stood at 234.7 points in the first half of the year.

The average house price was RM506,317 per unit.

This represented annual growth of only 0.9%.

That relatively modest increase is important.

It suggests that transaction resilience has not translated into rapid nationwide price inflation.

For buyers, this creates a more balanced environment than a market where values are accelerating sharply.

For sellers and investors, it also reinforces the need to distinguish between national averages and individual locations.

Strong townships, transit-linked locations or undersupplied residential segments can perform differently from areas facing substantial competing supply.

27,832 New Homes Launched, But Sales Rate Was 16.6%

Developers launched 27,832 new residential units during 1H2026.

The reported sales performance was 16.6%.

This is one of the weaker indicators in the latest market data.

A low initial sales rate does not necessarily mean all of the remaining units will become unsold stock, particularly because many projects require time to build momentum.

However, it does suggest buyers remain selective.

Developers cannot rely solely on bringing more supply to market.

Pricing, location, unit size, financing, amenities and competition from completed properties all affect conversion.

This is consistent with the broader 2026 market trend where buyer demand exists but is increasingly concentrated in projects offering a clearer value proposition.

Completed Unsold Homes Remain A Concern

Malaysia recorded 33,094 completed but unsold residential units with a combined value of RM17.78 billion.

The source compares this with 30,471 units worth RM17.73 billion previously.

Regardless of the comparison period, the current level shows that completed unsold housing remains a significant structural issue.

An unsold completed unit represents a different challenge from a new launch that has not yet fully sold.

The building is already finished, meaning capital has been committed while the developer continues carrying the inventory.

For buyers, a high level of unsold stock can create opportunities for negotiation in certain developments.

For developers, it places greater pressure on product selection and pricing discipline.

Stable OPR Supports Financing Confidence

The overnight policy rate remains at 2.75%.

Amir Hamzah said this stability has helped provide confidence to both financiers and buyers.

Stable borrowing costs are useful because homebuyers can assess financing with greater predictability.

However, the market is not receiving the additional stimulus that would come from a major interest-rate reduction.

That means property demand continues to depend more on employment, wages, affordability and project quality.

For developers, sales performance must therefore come from matching real buyer demand rather than relying on cheaper financing to lift the whole market.

Labour Market Conditions Support The 2H2026 Outlook

The government expects positive labour-market conditions to continue supporting property demand in the second half of 2026.

Low unemployment and rising wages can improve homebuyer confidence and borrowing capacity.

Government measures aimed at managing the cost of living, including minimum-wage policies and targeted assistance, may also help support household disposable income.

The effect on housing demand will still vary according to affordability.

A household with improving income may be more confident about buying, but property prices and mortgage commitments must still fit within monthly cash flow.

This is why accessible residential products are likely to remain important despite the stronger macroeconomic backdrop.

Office Occupancy Improves To 78.5%

Malaysia’s purpose-built office market showed a modest improvement.

The overall occupancy rate for private and government purpose-built offices increased to 78.5% in 1H2026 from 77.8% a year earlier.

The increase is not dramatic, but the direction is positive.

It suggests gradual absorption across the office market despite longstanding concerns over supply.

However, national occupancy figures can hide major differences between buildings.

New Grade A towers in strong business districts with rail connectivity and sustainability credentials may perform much better than older or less efficient office stock.

The improvement should therefore be viewed as a broad market indicator rather than evidence that every office submarket has recovered.

Shopping Mall Occupancy Remains Broadly Stable

Shopping-complex occupancy stood at 77.9% nationwide.

That compared with 78.7% in 1H2025.

The slight decline suggests that retail property remains competitive.

Malaysia continues to see new malls and retail components entering the market, while established centres compete for tenants and consumer spending.

Occupancy alone also does not indicate tenant quality or rental performance.

A shopping centre may achieve relatively high occupancy while still relying on lower rents or a weaker tenant mix.

For retail investors, footfall, spending power, location and tenant productivity remain more useful than occupancy in isolation.

Industrial Property Continues To Outperform

Industrial property remained one of the stronger segments.

The sector recorded 3,932 transactions worth RM14.78 billion, representing 3.8% growth.

This performance coincided with 7.3% growth in Malaysia’s manufacturing sector in the second quarter.

Industrial demand continues to be supported by manufacturing expansion, logistics, electrical and electronics investment, digital infrastructure and supply-chain diversification.

This is consistent with the strong development activity seen across Johor, Selangor and Penang.

For industrial land, the market is increasingly rewarding infrastructure readiness.

Power, water, road access, fibre connectivity and proximity to ports or airports can matter as much as land size.

Industrial Growth Is More Structural Than Residential Growth

The industrial segment has a different demand profile from residential property.

Housing depends heavily on household affordability and buyer sentiment.

Industrial demand can be driven by corporate expansion, manufacturing investment and international supply-chain decisions.

That gives industrial property a different economic cycle.

Recent investment in data centres, logistics and advanced manufacturing has strengthened demand in selected corridors.

However, industrial growth should still be assessed carefully.

Not every site benefits simply because it is labelled industrial.

The strongest locations are those with real infrastructure, labour access and occupier demand.

A Resilient Market Can Still Be Highly Selective

The 1H2026 numbers underline an important distinction.

Malaysia’s property market can be resilient overall while individual projects or segments still struggle.

Transaction values are substantial.

House prices are still edging higher.

Office occupancy is improving.

Industrial property remains active.

At the same time, new-launch sales are relatively low and unsold completed housing remains elevated.

For buyers, this means there is little reason to treat the market as uniformly hot or weak.

The better approach is to assess each location and project independently.

What Buyers Should Take From The 1H2026 Data

Residential buyers should pay particular attention to local supply and competing completed units.

A national average price increase of 0.9% does not provide much guidance on an individual condominium or township.

Investors should focus on rental demand, realistic achievable rents and future project completions.

Commercial buyers need to look beyond national occupancy figures and assess actual tenant demand at building level.

Industrial investors should prioritise operational infrastructure and real occupier activity.

The market is rewarding fundamentals more than broad sentiment.

Conclusion: Malaysia Property Market Is Stable, Not Overheated

Malaysia’s RM105.12 billion of property transactions in the first half of 2026 confirms that the sector remains active and resilient.

Residential property continues to dominate, with 110,998 transactions worth RM47.11 billion, while the average house price rose modestly to RM506,317.

Industrial property remains one of the stronger areas, supported by manufacturing growth and wider infrastructure investment.

But the weaker 16.6% sales rate for new residential launches and the 33,094 completed unsold homes show that buyers remain selective and supply risk has not disappeared.

The 1H2026 market is therefore best described as stable rather than exuberant.

For the second half of the year, employment, wage growth and financing stability should continue supporting demand, but developers and buyers will still need to be disciplined about pricing, location, supply and actual end-user demand.