Malaysia’s Real Estate Market Q3 2024: A Steady Growth Story

The Malaysian real estate market continued its upward trajectory in the third quarter of 2024 (Q3 2024), with an increase in both transaction volume and value. According to the latest data released by the Department of Valuation and Property Services (JPPH), the market recorded 112,305 transactions worth RM57.31 billion—a growth of 3.1% in transactions and 0.3% in value compared to the same period in 2023.

Key Drivers of Growth

YBrs. Sr Abdul Razak Yusak, the Director-General of Valuation and Property Services, attributed this robust performance to positive developments across all property subsectors, supported by Malaysia’s strong economic fundamentals and government initiatives under the MADANI Economic Framework. Policies such as the New Industrial Master Plan 2030 (NIMP 2030) have begun to yield positive results, particularly in boosting industrial real estate transactions.

“The strengthening of the real estate industry instills confidence in Malaysia’s economic transformation, positioning the sector as a key growth engine,” said Sr Abdul Razak.

Sector Highlights in Q3 2024

  1. Industrial Real Estate: The Star Performer

    • The industrial subsector posted the highest growth, with transaction volume increasing by 13.6% and value soaring by 26.7%.
    • These results reflect strong demand driven by government-led infrastructure projects and industrial initiatives.

  2. Commercial and Residential Sectors

    • Commercial properties recorded the second-highest growth in transaction volume at 7.7%, followed by residential (2.6%), development land (2.2%), and agriculture (0.4%).
    • All subsectors, except agriculture and development land, saw positive value growth.

  3. Decline in Unsold Completed Units

    • The overhang of unsold completed residential units dropped to 21,968 units worth RM13.85 billion, marking an improvement from the previous quarter.

  4. Residential Construction Activity

    • New residential construction activity surged, with completed units, new starts, and planned offerings growing by 4.6%, 27.6%, and 37.1%, respectively, year-on-year.

  5. Occupancy Rates in Commercial Spaces

    • Business complex occupancy remained steady at 77.6%, while private office occupancy held firm at 71.6%.

  6. Malaysian House Price Index (MHPI)

    • The MHPI stood at 220.2 points, with an annual growth of 0.4%. However, states like Selangor, Negeri Sembilan, Perak, and Terengganu saw slight contractions in house prices, ranging from 1.2% to 2.4%.

Government Initiatives Supporting Growth

The government’s flexibility in programs such as Malaysia My Second Home (MM2H) has bolstered luxury property transactions. Additionally, ongoing infrastructure projects like the Rapid Transit System (RTS) in Johor, Pan Borneo Highway in Sabah and Sarawak, and the East Coast Rail Link (ECRL) have further stimulated market activity.

Outlook for the Real Estate Market

Despite global economic challenges, Malaysia’s real estate market has maintained momentum, driven by proactive government measures and a resilient domestic economy. The emphasis on economic transformation and strategic projects ensures that the property sector remains a pillar of growth in the country.

For developers, investors, and stakeholders, the continued positive trends in Q3 2024 indicate a fertile environment for growth and opportunity.