Property Market Q3 2025: What the Numbers Reveal About Malaysia’s Property Momentum

Malaysia’s property landscape in Q3 2025 tells a compelling story of resilience, recalibration and renewed demand. With over 108,000 transactions recorded and a total value surpassing RM64 billion, the market demonstrates steady confidence—particularly in residential properties, which continue to dominate activity. For buyers, investors and industry observers, these numbers offer valuable insights into where the market is heading, and more importantly, where opportunities lie.

As always, Kuala Lumpur stands at the heart of Malaysia’s real estate ecosystem. Its economic vibrancy, infrastructure expansion and consistent buyer demand make KL property a strategic choice for both local and foreign investors. The Q3 2025 data reinforces this positioning.

Residential Market Dominates Activity and Value

Residential properties accounted for 61.7% of all transactions, underlining their role as the backbone of Malaysia’s property sector. In terms of value, residential contributed RM28.51 billion, representing 44.3% of the total market.

Volume and Value Trends: Stable with Upside Potential

Transaction volume showed mild fluctuations across quarters, reflecting natural market adjustments. However, transaction value displayed a healthier pattern, with Q2 2025 and Q3 2025 both showing upward momentum.

This suggests:

Buyers are increasingly committing to higher-value properties
More premium developments—especially in Klang Valley—are entering the market
Confidence in market fundamentals remains strong

For KL property investors, this trend reinforces the importance of acting early before prices climb further as demand strengthens.

New Launches Concentrated in KL, Selangor and Penang

The states leading new residential launches in Q3 2025 were:

WPKL – 3,098 units
Pulau Pinang – 2,204 units
Selangor – 1,575 units

This distribution highlights the ongoing attractiveness of Malaysia’s top economic corridors. Kuala Lumpur’s dominance is unsurprising—its high population density, transit networks and employment opportunities sustain housing demand even during cautious economic cycles.

New launches were also almost evenly split between high-rise and landed units, indicating that developers are matching diverse buyer preferences. However, suburban high-rise units in KL and Selangor continue to attract investors due to affordability and proximity to rail lines.

Unsold Units: A Market Correction, Not a Crisis

The market reported 28,672 completed unsold residential units worth RM17.25 billion. While this number may seem large, several insights are important:

Majority (43.5%) were launched 5–10 years ago, meaning they are older, less competitive products
High-rise units formed 51.9% of the unsold stock—often due to location or layout mismatch
Most unsold units fall below RM300,000, reflecting supply-demand imbalances in certain states rather than nationwide weakness

For buyers, this indicates renewed opportunity for value purchases. For developers, it underscores the importance of designing future projects aligned with urban demand—particularly in KL where buyers prioritize convenience and connectivity.

Serviced Apartments: High Unsold Numbers, but KL Demand Remains Strong

Serviced apartments recorded 17,892 unsold completed units, with nearly 60% priced between RM500,000 – RM1 million.

Interestingly, despite high unsold supply across Malaysia:

KL’s serviced apartment occupancy and demand remain stable,
The segment continues to attract young professionals and investors
Transit-oriented developments (TODs) around MRT and LRT lines maintain strong appeal

This reinforces KL’s unique market dynamics—where lifestyle-driven, well-located serviced apartments remain a viable investment category.

Construction Activity Points Toward a Balanced Pipeline

From Q1 to Q3 2025, Malaysia saw:

69,330 residential units completed
64,483 units started
21,884 units newly planned

The moderate pace of new planned supply signals a market trending toward stability. Developers are more cautious and strategic, focusing on locations with proven absorption—such as KL city centre, Bangsar South, Cheras and Mont Kiara.

House Price Index: Prices Holding, Showing Healthy Growth

The Malaysian House Price Index (MHPI) recorded steady upward movement from Q3 2021 to Q3 2025. Although growth has normalized compared to earlier years, the stability is a positive indicator for investors seeking long-term gains.

Key insights:

Semi-detached homes grew 0.8% year-on-year
Terraced homes grew 0.1%
Detached homes saw a slight decline (-0.9%)
High-rise units growth remained moderate

KL, however—due to strong rental demand—continues to outperform national averages in many segments.

Why These Numbers Matter for KL Property Buyers

All indicators point to a market that is:

Stabilizing
Returning to sustainable levels
Offering better value than previous cycles
Supported by growing economic fundamentals

For buyers, especially in KL:

Prices remain attractive relative to regional cities
Rental yields for strategically located units are among the best in ASEAN
Large unsold inventories create negotiation opportunities
New infrastructure (MRT3, highways) is set to boost property values

Conclusion: A Strategic Window for KL Property Investment

The Q3 2025 data provides clarity: Malaysia’s property market is stable, resilient and full of opportunities—especially in Kuala Lumpur. With balanced supply, steady prices and growing demand, buyers who enter now are well-positioned to benefit as the next growth cycle unfolds.

If you’re exploring opportunities in KL’s most promising neighbourhoods, visit klproperty.cc—your trusted platform for curated insights, personalised recommendations and access to the best property deals in the heart of Malaysia.