The local property sector is expected to record moderate growth in 2025, with projected sales totalling RM21.5bil, amid heightened uncertainty stemming from potential risks associated with both current and former US presidents, Joe Biden and Donald Trump.

Investor concerns over the artificial intelligence diffusion policies introduced under the Biden administration are expected to persist and potentially intensify under a Trump-led US government.

This could moderate the pace of data centre expansion by multinational companies in Malaysia.

Affin Hwang Investment Bank Research (Affin Hwang Research) has maintained an “overweight” call on the sector, believing that solid fundamentals – such as improved connectivity, an industrial-led demand recovery and supportive policy measures – will drive long-term growth.

The research house said the fundamentals will be underpinned by sustained demand, ongoing infrastructure expansion, and strategic regional developments.

“With rising demand and gradual increases in average selling prices, we expect profit margins to improve,” it noted, adding that Eco World Development Group Bhd, Sime Darby Property Bhd and IOI Properties Group Bhd are among the developers well-positioned to capitalise on the sector’s positive outlook.

In 2024, the sector delivered strong sales of RM19.3bil, with homes priced below RM600,000 continuing to drive market activity. However, data from the National Property Information Centre showed that developers accounted for just 17% of total residential transactions in 2024, down from 22% in 2023.

While new launches surged to 75,784 units in 2024, the highest since 2017, absorption rates slipped from 40% in 2023 to 37% in 2024, pointing to weaker buyer appetite despite the increased supply.

Despite this shift, Affin Hwang Research observed that developers under its coverage outperformed the broader market, showing resilient sales growth driven by core residential offerings and strategic expansion into the industrial segment.

Developers also ramped up supply by 24% nationwide in 2024, reflecting their optimistic outlook, driven by expectations of a more favourable economic environment and continued government support.

Moving forward, Affin Hwang Research said key initiatives – such as the full stamp duty exemption on property transfers and loan agreements for first-time homebuyers, a flat 4% stamp duty, and a relaxed Malaysia My Second Home requirements – are expected to drive further growth in 2025 by attracting foreign investment and high-net-worth individuals.

“We reiterate our ‘overweight’ rating on the property sector, driven by improving property market sentiment, the resurgence of large-scale infrastructure projects – particularly in the Johor region – expectations of a stronger ringgit in 2025, and sustained high property sales among the listed property developers under our coverage.”

About Sactuary Suria

The 6th phase of residential development at Permatang Sanctuary by IJM in Alma, Bukit Mertajam. Located along Lorong Santuari 25 & 27, adjacent to Sanctuary Court. It is only a short drive to an abundance of amenities namely AEON Mall, Lutos’s Hypermarket, eateries, schools and banks. This development features 20 units of 2-storey semi-detached houses, with two different built-up sizes to choose from.

*Photo taken Mar 2025

Find out more about Sanctuary Suria

Begonia @ Botanica.CT offers modern 2-storey semi-detached homes in a gated and guarded environment, ensuring peace of mind for you and your family. Get a glimpse of your future home in a beautifully crafted, gated community—perfect for growing families, savvy investors & peaceful living lovers!

Why Choose Begonia @ Botanica.CT?

• Freehold Property – A lasting ownership.
• Spacious Layouts – 4 bedrooms and 3 bathrooms, starter homes for growing families.
• Strategic Location – Seamless access to essential amenities including retail outlets, international schools, healthcare facilities and daily conveniences.
• Exclusive Community – Limited units available, thoughtfully planned low-density neighbourhood.
• Extra 20 ft. Backyard – Perfect for Wet Kitchen Area, BBQ & Dining, or Outdoor Play Area.
• Landed Home with Extra 8ft Side Garden.
• Show House NOW OPEN for Viewing – Come experience for yourself!

With Certificate of Completion and Compliance (CCC) ready soon, now is the best time to secure your spot in this exclusive, freehold gated community.

Located at Botanica.CT, a 300-acre master-planned garden township in Balik Pulau. It features various residential properties, a commercial precinct and the Prince of Wales Island International School. Upcoming developments include a 173-bed Selgate Specialist Hospital, a Wetland Park and Eden at Botanica CT – The First Integrated Senior Living Resort in Penang.

Contact Sales Gallery at 04-866 2399 or book your private tour at
https://bit.ly/Begonia-Botanica
Venue: Botanica.CT Sales Gallery, Balik Pulau, Penang

Secure your dream home now and enjoy this special deal!

WhatsApp below:

• Johannson (wa.me/60124633699)
• Asmu’i (wa.me/60125707699)
• Mei Ling (wa.me/60124958699)

To support new and growing businesses, Jayamas Property introduces the FREE RENTAL PROGRAM as part of the launch of Chinatown. This special initiative offers a rent-free period, helping reduce startup costs and providing financial flexibility during the early stages of business.

The program supports long-term growth through fixed-term leases with the option to extend, along with clear operational guidelines and renovation schedules. It’s designed to ensure each unit is business-ready, encouraging a smooth and timely opening. Whether you’re launching a new concept or expanding your brand, the Free Rental Program is your gateway to establishing a strong presence in one of Penang’s most dynamic commercial hubs.

Interested? Contact 016-291 6133 today to learn more or secure your space.

Chinatown – A Revitalized Commercial Hub in Raja Uda

Located in the heart of Raja Uda, Chinatown is an exciting new commercial project by Jayamas Property, set to become a vibrant destination for business, culture, and community. With its strategic location and strong pedestrian flow, Chinatown is designed to attract both entrepreneurs and visitors, making it one of the most promising commercial districts in Penang.

The development offers a curated selection of ground and mezzanine floor units, ideal for F&B operators, retailers, and service providers. With its completion targeted by the end of this year, tenants can expect a well-structured timeline for renovations and setup, ensuring a smooth opening experience in a high-traffic environment.

*Terms & Conditions apply

The Penang Island City Council (MBPP) will reopen the traffic barrier at Lorong Sungai Tiram 7 this August in response to resident complaints over severe congestion in the area.

MBPP Councillor Dr. Mohd. Suhairi Arumugam Abdullah announced that over 80% of residents in the area requested the barrier to be removed, citing long delays caused by limited road access.

“Currently, residents can only exit via Lorong Sungai Tiram 6 and Jalan Sungai Tiram 1, which leads to Jalan Sultan Azlan Shah,” he said. “Parents waiting to pick up their children near SMK Heng Ee Bayan Baru have also contributed to bottlenecks, with some residents waiting up to 1 hour and 30 minutes just to leave the neighborhood.”

After multiple discussions within MBPP’s Infrastructure and Traffic Technical Committee, the council agreed to open the barrier to ease traffic and improve connectivity.

Dr. Suhairi added that the move will reduce traffic conflict, enhance road capacity, and provide an alternative route for residents.

However, MBPP Deputy Director of Engineering Ir. Ts. Zainuddin Mohamad clarified that heavy vehicles, especially construction trucks, will remain prohibited from using this route. Special lanes will be designated to prevent such vehicles from entering the residential area.

The barrier, built over a decade ago, was initially installed under a Traffic Impact Assessment (TIA) to manage local congestion. Once removed, the reopened road will provide direct access to the roundabout near the Penang International Airport.