The Malaysian property market recorded its best performance in a decade in 2024, according to the latest report by the Valuation and Property Services Department (JPPH). The sector saw a 5.4% year-on-year (y-o-y) increase in transaction volume, reaching 420,525 transactions. Meanwhile, the total transaction value surged by 18% y-o-y to RM232.3 billion, reflecting growing confidence in the market.

Finance Minister II Datuk Seri Amir Hamzah Azizan attributed this robust performance to the government’s efforts in revitalizing industry activities. He emphasized that the property market remains a key indicator of the country’s economic health, with increasing transaction volumes and occupancy rates signifying positive industry momentum.

Residential Market Shows Strong Growth

The residential segment continued to drive the market, with 75,784 units launched and a sales rate of 37.3%. This growth was observed across nearly all states, supported by government policies and improved buyer sentiment.

A notable improvement was seen in the overhang situation, where the number of unsold completed residential units declined to 23,149, valued at RM13.94 billion. This represents a 10.3% drop in volume and a 21.2% decrease in value compared to 2023. Similarly, the overhang in serviced apartments reduced to 19,564 units, valued at RM15.7 billion, marking a decline of 6.1% and 5.6% y-o-y in volume and value, respectively.

Despite the positive market performance, affordability concerns remain a challenge. The Malaysian House Price Index stood at 225.6 points in 2024, with an average property price of RM486,678 per unit. The index recorded a moderate annual growth of 3.3%, lower than the 4.1% y-o-y increase seen in 2023.

Market Confidence and Future Outlook

Rahim & Co International Sdn Bhd’s director of research, Sulaiman Saheh, highlighted that the total transaction value included primary sales by developers, which may have been recorded before applying discounts and rebates. However, he noted that even with adjustments, the record-high figures indicate a resilient market with improving conditions.

The cautious optimism among buyers persists amid rising costs and income stagnation. While affordability remains a concern, the ongoing growth in transactions reflects a balance between market confidence and government support through incentives and policies.

On the overhang situation, Sulaiman pointed out that the total unsold completed and under-construction units increased by 22.3%, reaching 115,674 units. He stressed the importance of monitoring the market’s ability to absorb these units to prevent future oversupply issues.

Looking ahead, JPPH anticipates continued market growth in 2025, driven by sustainable transaction activities and an expanding construction sector. Strategic infrastructure projects and non-residential developments are expected to bolster market momentum.

Additionally, Budget 2025 introduced measures to further stimulate demand, including individual income tax relief for housing loan interest payments. These initiatives are expected to encourage homeownership and sustain the positive trajectory of the property sector.