Malaysia’s property market is on a strong upward trajectory, with the first half of 2024 (1H2024) marking a significant milestone. The National Property Information Centre (Napic) reported that the property transaction value reached RM105.65 billion, a 23.8% year-on-year (y-o-y) increase, the highest growth in five years. This substantial growth underscores the resilience and recovery of the sector, fueled by increasing demand across various property sub-sectors and supportive government policies.
Strong Growth Across All Property Segments
The standout performance in 1H2024 was observed across all property sub-sectors, reflecting a broad-based recovery in Malaysia’s real estate market. The residential sector remained the largest contributor, with transaction values rising by 10.4% to RM49.43 billion. This steady growth indicates continued demand for homes, with buyers showing confidence in the market’s future prospects.
The commercial property segment experienced the most impressive growth, soaring by 41.5% to RM23.71 billion. This surge was driven by increased investments in retail spaces, offices, and other commercial real estate, signaling that businesses are expanding and investing in their future operations. The industrial sector also performed well, with a 23.4% rise to RM13.50 billion, reflecting growing interest in logistics hubs, manufacturing facilities, and other industrial properties.
Additionally, the agricultural segment saw a 37.8% increase, reaching RM9.73 billion, while development land and others recorded an impressive 59.3% rise to RM9.28 billion. These gains highlight a growing interest in land acquisition for future projects and developments.
Increased Transaction Volume
In addition to the rise in transaction value, 1H2024 also saw a strong increase in the overall volume of property transactions. A total of 198,806 properties were sold, an 8% increase from 184,140 units in 1H2023. The residential sector once again led the way, with 121,964 units sold, marking a 6.1% increase compared to the same period last year. This steady growth in both value and volume underscores the confidence of homebuyers and investors alike in Malaysia’s real estate market.
The commercial sector also posted strong results, with transaction volumes rising by 22.4% to 21,537 units. This growth signals increased activity in Malaysia’s business and retail sectors, as companies expand their operations and seek out prime commercial spaces. The industrial sector, agriculture, and development land segments also posted growth in transaction volumes, further contributing to the market’s overall positive outlook.
Positive Impact of Government Policies
Malaysia’s strong property market performance in 1H2024 has been supported by several government initiatives aimed at stimulating growth and supporting buyers. Deputy Finance Minister Lim Hui Ying emphasized that policies such as the Housing Credit Guarantee Scheme (SJKP) and the steady overnight policy rate (OPR) of 3.0% have played key roles in driving market activity.
The extension of the stamp duty exemption period on property transfer documents for first-time homebuyers has also encouraged more people to enter the market, providing crucial support for those looking to make their first property investment. These government measures have created a more accessible and stable environment for homebuyers, contributing to the sector’s strong performance.
Decline in Overhang Properties
Another positive development in 1H2024 is the continued reduction in the number of overhang residential properties. The number of completed but unsold homes fell to 22,642 units, worth RM14.24 billion, continuing the decline from 25,816 units worth RM17.68 billion in 2H2023. This indicates that demand is catching up with supply, particularly in the affordable housing segment, where most unsold units are priced below RM300,000.
The decline in overhang units is a positive sign for developers and buyers alike, as it suggests a healthier balance between supply and demand in the property market.
Outlook for the Future
With a strong start in 1H2024, Malaysia’s property market is well-positioned for continued growth. The positive impact of government policies, coupled with increasing demand across all property segments, suggests a promising future for the sector. The increase in both transaction value and volume demonstrates confidence in the market, while the decline in overhang properties signals that demand remains robust.
As Malaysia’s real estate market continues to evolve, the focus on affordability, sustainability, and accessibility will be key drivers of future growth. With supportive government initiatives and a strong foundation of demand, Malaysia’s property sector is on track to achieve even greater heights in the coming years.
