Bank Negara Malaysia Reduces OPR to 2.75% - First Adjustment Since 2023
Bank Negara Malaysia’s Monetary Policy Committee (MPC) has decided to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.75%, lowering the ceiling and floor rates to 3% and 2.5%, respectively. This decision comes amid a global economic environment that continues to grow, supported by strong consumer spending, resilient labor markets, and fiscal stimulus. However, uncertainties such as geopolitical tensions and fluctuating trade policies pose potential risks to global financial stability and commodity prices. In Malaysia, economic activity remains robust, with continued growth expected in the second quarter, driven by strong domestic demand and steady exports. Employment and wage gains, particularly in domestic-oriented sectors, along with supportive policy measures, are sustaining household spending. Investments are also expected to grow, supported by public and private sector projects and strategic national initiatives. Export prospects may improve due to pro-growth global policies and sustained demand for key products like electrical and electronic goods. Inflation remains moderate, with headline and core inflation averaging 1.4% and 1.9% respectively in the first five months of 2025. With global cost pressures contained and domestic demand steady, inflation is expected to remain subdued. The ringgit’s performance will continue to be shaped by external factors, though Malaysia’s solid economic fundamentals and reforms offer support.
Date: July 9, 2025
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13MP: Only Financially Strong Developers May Survive in New Build-Then-Sell Plan
The 13th Malaysia Plan proposes making the build-then-sell housing model mandatory by amending the Housing Development Act 1966, a move expected to reshape the property market and trigger industry consolidation, according to Hong Leong Investment Bank (HLIB) Research. The new model requires developers to fund construction upfront, increasing their financial burden and potentially reducing new project launches, affecting housing supply, affordability, and causing ripple effects across the financial and construction sectors. However, developers with strong finances and recurring income may adapt well.
Aug. 1, 2025
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Malaysia's Property Market Faces Deepening Supply-Demand Mismatch
Malaysia’s housing market is experiencing a growing disconnect between supply and actual demand, particularly for affordable homes. Developers continue to prioritize mid- and high-end properties despite persistent affordability challenges faced by B40 and M40 income groups. Dr. Suraya Ismail of Khazanah Research Institute highlighted that only a small fraction of new launches are priced below RM200,000, while the majority of unsold or overhang units are above RM300,000. She warned that oversupply in urban centers, stagnant income growth, and weak coordination in project approvals are exacerbating the housing crisis. Despite high demand in the sub-RM300,000 segment, developers remain optimistic, often backed by financing or partnerships, though this confidence may be misplaced.
The property glut extends beyond completed but unsold units, encompassing under-construction projects with little demand and vacant investor-owned homes. Rental yields remain weak, often falling below mortgage costs, particularly in areas like Mont Kiara and Cyberjaya. Suraya criticized speculative practices such as pegging rental prices to loan repayments and raised concerns over Joint Management Bodies (JMBs) enforcing minimum rent thresholds, distorting market signals. She stressed the need for formalizing the rental sector with a Rental Tenancy Act and urged the government to adopt indicators like rent-to-income ratios to guide housing policies. The current value system, she argued, favors profiteering over equitable access to housing.
July 1, 2025
Tags: Malaysia
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NAPIC: Property Market Malaysia - 2025 Q1
In the first quarter of 2025, Malaysia's property market experienced a decline in both transaction volume and value, with 97,772 deals worth RM51.42 billion — a drop of 6.2% and 8.9% respectively compared to the same period in 2024. The residential sector continued to dominate, accounting for over 59,000 transactions worth more than RM24 billion. While the industrial segment saw a slight 0.3% year-on-year increase, both the agriculture and commercial sectors recorded declines of 10.6% and 5.4%, respectively.
Despite the dip in transactions, construction activity surged. A total of 28,344 properties began construction in Q1 2025, a sharp increase from 21,391 in the previous year. Notably, serviced apartment construction starts doubled, rising from 5,458 units to 14,761, and new residential launches more than doubled to 12,498 units. The Malaysian House Price Index rose by 0.9% to 225.3 points, pushing the average house price to RM486,070. Most states recorded modest price increases, while Sabah, Sarawak, and Kuala Lumpur saw a 2.4% decrease.
However, residential overhang — unsold but completed homes — worsened, reaching 23,515 units valued at RM15 billion. In contrast, the overhang for serviced apartments improved, falling 6.7% in volume and 6.9% in value. This improvement was particularly evident in Johor, where initiatives like the Forest City special financial zone, the Johor-Singapore special economic zone, and Pulau Satu’s duty-free status helped reduce the serviced apartment overhang to 5.6% in Q1 2025.
May 9, 2025
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Malaysia’s Property Market Set for Moderate Growth in 2025 Amid Global Uncertainty
The Malaysian property sector is anticipated to experience moderate growth in 2025, with projected sales reaching RM21.5 billion. This outlook comes despite global uncertainties tied to potential shifts in U.S. leadership and their impact on artificial intelligence policies, which may slow multinational data centre investments in Malaysia. However, Affin Hwang Investment Bank Research maintains a positive "overweight" rating on the sector, citing strong fundamentals such as improving connectivity, rising industrial demand, and supportive government policies. Key developers like Eco World, Sime Darby Property, and IOI Properties are seen as well-positioned to benefit from these favorable conditions, with expectations of improved profit margins driven by higher demand and gradual price increases.
In 2024, the sector achieved RM19.3 billion in sales, primarily from homes priced below RM600,000. Although new launches surged to their highest since 2017 at 75,784 units, absorption rates declined slightly, reflecting more cautious buyer sentiment. Despite this, developers under Affin Hwang’s coverage outperformed the market, supported by steady residential demand and growth in the industrial segment. The research firm expects growth to continue in 2025, backed by initiatives such as stamp duty exemptions for first-time buyers and relaxed requirements under the Malaysia My Second Home programme. Additionally, the anticipated strengthening of the ringgit and renewed infrastructure projects, particularly in Johor, are expected to further boost market sentiment and foreign interest.
April 17, 2025
Tags: Malaysia
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Malaysia’s Property Market Hits Decade High in 2024, Driven by Strong Economic Policies
Malaysia’s property market in 2024 recorded its strongest performance in a decade, with 420,525 transactions worth RM232.3 billion — a 5.4% increase in volume and an 18% jump in value compared to 2023. This growth, according to the 2024 Property Market Report by the Valuation and Property Services Department (JPPH), surpasses the 2014 peak of 384,060 transactions. Finance Minister II Datuk Seri Amir Hamzah Azizan attributed this surge to Malaysia's solid 5.1% economic growth and proactive government initiatives under the Madani Economy framework, including the relaxation of MM2H conditions, new industrial projects, and the establishment of a Special Financial Zone in Forest City.
Newly launched residential projects also saw a notable uptick, with 75,784 units launched and a sales performance of 37.3%, driven by activity across nearly all states. The overhang issue improved as unsold completed units dropped by over 10% in volume and over 21% in value. Residential construction activity showed growth across all stages, while shopping complex occupancy slightly increased to 78.8%. The Malaysian House Price Index rose moderately to 225.6 points, with an average price of RM486,678, reflecting a 3.3% annual gain.
Looking ahead to 2025, Amir Hamzah projected continued resilience in the property market, supported by an anticipated 4.5–5.5% national economic growth. The government plans further incentives, including tax relief for housing loan interest and increased funding under the Housing Credit Guarantee Scheme. Catalytic developments such as the Johor-Singapore Special Economic Zone (JS-SEZ), East Coast Rail Link (ECRL), and Pan Borneo Highway are expected to attract investors and stimulate the market further. Emphasis was also placed on the importance of accurate data reporting to the National Property Information Centre (NAPIC) to guide future policy-making and ensure sustainable industry growth.
Feb. 26, 2025
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JS-SEZ A Major Boost for Construction and Property Sectors
The Johor-Singapore Special Economic Zone (JS-SEZ), spanning 3,500 sq km from Kulai and part of Pontian to Pengerang, is set to transform the region's economic landscape. Analysts highlight that Malaysian contractors, unlike in previous developments such as Forest City, will benefit significantly from the zone's infrastructure demands, including utilities, warehouses, homes, and offices. Focused on public transportation and renewable energy, the zone offers opportunities for railway, solar panel, and road infrastructure projects. With a goal to attract 100 projects and create 100,000 high-value jobs within a decade, the JS-SEZ is supported by government incentives, including a special corporate tax rate, to lure foreign investments and drive demand for industrial buildings and offices.
Jan. 8, 2025
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KL Property Index Soars in 2024, Driving Sector Optimism
The KL Property Index surged by 31.5% in 2024, outperforming the KLCI’s 12.9% gain, reflecting robust growth in Malaysia’s property sector. MIDF Research maintained a positive outlook for 2025, citing key drivers such as the Johor-Singapore Special Economic Zone, the Johor Bahru–Singapore Rapid Transit System Link, and a stable Overnight Policy Rate of 3%. Despite a 2% month-on-month decline in loan applications for property purchases in November 2024 (totaling RM55.3 billion), loan applications rose 14% year-on-year, with cumulative applications reaching RM587.7 billion for the year, a 4.8% increase. Loan approvals also grew by 6.7% year-on-year to RM259.6 billion, supporting higher new property sales and signaling sustained market interest.
Jan. 7, 2025
Tags: Malaysia
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Higher Loan Applications in 2024 Reflect Strong Property Market Sentiment
MIDF Research: Malaysia's total loan applications for property purchases reached RM587.7 billion in the first 11 months of 2024, growing 4.8% year-on-year, despite a slight monthly decline of 2% in November. Buying interest remains strong, supported by a stable Overnight Policy Rate (OPR) at 3% and positive market sentiment. Meanwhile, approved loans rose 6.7% year-on-year to RM259.6 billion, though November saw a 10.8% monthly drop due to a lower approval ratio. The steady approval rate and higher developer sales indicate continued confidence in the property sector heading into 2025.
Jan. 7, 2025
Tags: Malaysia
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Singapore's Property Market Faces Potential Cooling Measures Amid Price Surge
Morgan Stanley reports that a surge in Singapore's housing prices, driven partly by speculative buying, may prompt the government to implement additional cooling measures. Analysts, including Wilson Ng, note that investors are purchasing properties with the intent to sell before completion, potentially leading to a 5% price decline this year due to increased supply and possible policy interventions. The government, preparing for an election year amid affordability concerns, has previously introduced measures such as doubling stamp duties for foreign buyers. Morgan Stanley suggests that future policies might focus on raising seller stamp duties to curb speculative activities.
Jan. 6, 2025
Tags: Global
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FDI Inflows Bolster Optimism Among Malaysian Property Players for 2025
Industry players in Malaysia's real estate sector are optimistic about the market's prospects for 2025, driven by robust foreign direct investment (FDI) inflows and a resilient economic environment. According to the Malaysia Commercial Real Estate Investment Sentiment Survey (CREISS) 2025, 91% of respondents expressed optimism about the country's commercial real estate market, with 34% planning to increase their investments. This positive sentiment is supported by RM254.7 billion in approved investments during the first nine months of 2024—a 10.7% increase from 2023. The property market recorded 311,211 transactions valued at RM163 billion in the same period, indicating significant growth compared to the previous year.
Despite this optimism, challenges such as rising construction costs, increased building vacancy rates, and a high-interest-rate environment persist. The retail segment faces additional hurdles, including brand boycotts leading to declining sales and store closures. Nevertheless, Malaysia's economic outlook remains positive, with solid GDP growth of 5.2% year-on-year in the first nine months of 2024 and a strengthening labor market. Key investment hotspots identified for 2025 include Klang Valley and Johor, with sectors like data centers and industrial/logistics expected to drive the commercial property market forward.
Jan. 6, 2025
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RHB Investment Bank Projects 10% Growth in Malaysia's Property Sales for 2025
RHB Investment Bank Bhd (RHBIB) forecasts a 10% year-on-year increase in Malaysia's property sales for 2025, anticipating that developers will focus on mid-range high-rise projects to address affordability concerns and preserve landbanks. The bank also notes that regions like Iskandar Malaysia are expected to see more project launches, driven by robust economic growth and foreign direct investments. RHBIB maintains an "overweight" rating on the property sector, highlighting developers with strong asset bases and capital management strategies, such as Sime Darby Property, Mah Sing, Sunway, and UEM Sunrise, as top picks.
Jan. 3, 2025
Tags: Malaysia
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Malaysian Property Stocks Anticipate Valuation Growth Amid Recurring Income Ventures
RHB Investment Bank forecasts continued valuation growth for Malaysian property developers in 2025, building on a 32% sector rally in 2024. The bank highlights that developers expanding into ventures like data centers and industrial projects, which generate recurring income, are particularly well-positioned. Notably, companies such as Sunway Bhd and IOI Properties Group Bhd have diversified into these areas, enhancing earnings stability and attracting investor interest.
RHB suggests that investors consider developers like Sime Darby Property Bhd, Mah Sing Group Bhd, and Matrix Concepts Holdings Bhd, which are leveraging existing landbanks to develop income-yielding assets. The bank maintains an "overweight" rating on the sector, anticipating that smaller-cap developers with strong sales, solid finances, and strategic landbanks will narrow the valuation gap with larger peers. Additionally, developers are expected to focus on mid-range high-rise residential projects to address affordability concerns and optimize land use.
Jan. 3, 2025
Tags: Malaysia
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Singapore's Home Prices Rebound on Year-End Sales Boom
Singapore's private home prices rose by 2.3% in the fourth quarter of 2024, reversing a 0.7% decline from the previous quarter and marking the largest increase in a year. This rebound is attributed to a surge in new project sales and lower borrowing costs, with November seeing the highest number of private units sold in a single month since 2013. For the entire year, home prices increased by 3.9%, continuing an eight-year upward trend. Analysts, including those from Barclays and Citigroup, suggest that the government may introduce additional cooling measures to address housing affordability concerns, especially with an upcoming election. The Urban Redevelopment Authority has noted potential downside risks for 2025, such as possible renewed restrictions on global trade.
Jan. 2, 2025
Tags: Global
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Rehda: Home Affordability in Malaysia Remains Stable Amid Rising Living Costs
The Real Estate and Housing Developers’ Association (Rehda) reports that Malaysia's home affordability remains stable despite increasing living costs. Citing data from the National Property Information Centre, Rehda President Datuk Ho Hon Sang notes that the residential property market reached a 10-year high in Q3 2024, with 70,520 transactions valued at nearly RM29 billion, indicating market resilience amid global uncertainties. Additionally, Malaysia's home ownership rate stood at 76.5% in 2022, reflecting stability with potential for improvement.
Ho acknowledges challenges faced by young professionals in purchasing homes, referencing the EPF Belanjawanku 2024/2025 report, which estimates that a single person in the Klang Valley requires RM2,800 monthly for basic living costs, leaving limited room for savings. He suggests that wage increments and bonuses could aid in achieving homeownership goals. Government initiatives like PR1MA, MyHome, and the Step-Up Financing Scheme for youths, offering lower repayment rates for the first five years, are deemed pivotal in facilitating homeownership. Ho also calls for improved coordination between state and federal agencies to prevent redundancy and emphasizes the need for demand analyses to ensure projects meet market needs.
Dec. 31, 2024
Tags: Malaysia
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China's December Home Sales Stabilize Amid Government Stimulus Measures
In December 2024, China's residential property market showed signs of stabilization, with home sales remaining flat year-on-year at 451.4 billion yuan (RM276.08 billion), halting the declines observed earlier in the year. This improvement is attributed to the government's recent stimulus efforts, including reduced borrowing costs on existing mortgages, relaxed purchasing restrictions in major cities, and lowered taxes on home acquisitions. These measures have invigorated the market, particularly in first-tier cities like Shanghai, where increased activity may help mitigate nationwide declines.
Despite this stabilization, the property sector continues to face challenges. Throughout 2024, sales from the top 100 developers declined by 28.1%, a steeper drop compared to the 16.5% decrease in 2023. Looking ahead, institutions like Morgan Stanley and Fitch Ratings project further contractions in 2025, with anticipated declines in both sales volumes and home prices. The government's reaffirmation of its growth target of around 5% for the coming year underscores the ongoing uncertainties in China's economic outlook.
Dec. 31, 2024
Tags: Global
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Demand for Affordable Housing Set to Rise
The Malaysian property market is projected to maintain steady demand for residential properties, particularly in the affordable housing segment, into 2025. AmInvestment Research notes that the first half of 2024 saw a 6.1% increase in the number of residential property transactions and a 10.4% rise in transaction value year-on-year, according to the National Property Information Centre (Napic). This positive trend is expected to continue, supported by favorable government policies promoting affordable housing, the relaunch of the Malaysia My Second Home programme, and sustained positive labor market conditions.
Additionally, demand for industrial properties has notably increased since the COVID-19 pandemic, while affordable housing remains consistently sought after by potential buyers. Napic's data for the third quarter of 2024 indicates a slight increase in both the volume and value of housing transactions, with 70,520 units recorded, valued at RM28.74 billion, compared to 68,561 units worth RM28.36 billion in the same quarter the previous year. Overall, the property market has shown improvement, with the number and transaction value rising by 3.1% and 0.3%, respectively, totaling 112,305 transactions valued at RM57.31 billion.
Dec. 30, 2024
Tags: Malaysia
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Extended Loan Tenures May Unintentionally Inflate Property Values, Experts Warn
Critics argue that financing structures like extended loan tenures and intergenerational loans, intended to make homeownership more accessible, might inadvertently drive up property prices, exacerbating the housing affordability crisis. Dr. Yeah Kim Leng, an economics professor at Sunway University, notes that while financing access influences the housing market, it is not the primary driver of rising property prices. He credits Bank Negara Malaysia's prudential lending policies for curbing house price growth in recent years.
Khazanah Research Institute researcher Theebalakshmi Kunasekaran highlights that longer mortgage tenures can make expensive homes appear more affordable in the short term but result in significantly higher overall costs. For instance, extending a 35-year loan for a RM500,000 home to 40 years increases the total financing cost by 17.4%, adding RM97,428, while reducing monthly payments by only 4.4%. This suggests the need for more incentives and new models, including public-public partnerships, to provide affordable homes to low and middle-income groups, especially first-time buyers.
Dec. 27, 2024
Tags: Malaysia
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China to Focus on Stabilizing Housing Market in 2025
China's Ministry of Housing and Urban-Rural Development plans to focus on stabilizing the housing market in 2025 through policies that reduce mortgage rates, lower down payment requirements, and relax purchase restrictions to support first-time homebuyers. The ministry aims to strengthen the recovery seen in 2024 by increasing the supply of affordable housing and improving housing conditions for young people, new urban residents, and migrant workers. Additionally, China intends to expand affordable housing initiatives, promote the renovation of urban villages and old buildings, and shift towards the sale of completed homes to optimize the market and meet housing needs more effectively.
Dec. 25, 2024
Tags: Global
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Cargo Ports to Drive Malaysia's Economy and Real Estate in 2025
Malaysia's cargo ports are projected to significantly boost the nation's economy and real estate sector in 2025. Irhamy Ahmad, CEO of Irhamy Valuers International, anticipates that ports will handle approximately 817 million metric tonnes of goods, contributing around RM690 billion to the GDP. This growth is expected to enhance the logistics and warehousing industries, leading to increased demand for related real estate developments. Notably, Tanjung Pelepas port has been recognized as the fifth most efficient port globally, underscoring Malaysia's strategic position in international trade.
Dec. 23, 2024
Tags: Malaysia
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China's Property Sector Faces Ongoing Challenges Amid Debt Crisis
China's property sector continues to grapple with significant challenges as the debt crisis enters its fifth year. Recent developments highlight the ongoing struggles of major developers, including China Vanke Co., Ltd., which is under scrutiny by the banking regulator for potential default risks. In Hong Kong, New World Development Co. Ltd. is seeking to delay loan maturities, and Parkview Group has put a landmark commercial complex in Beijing up for sale. These events underscore the persistent liquidity issues and the broader impact on the housing market, which remains a substantial drag on demand for various goods and services.
Despite government efforts to stabilize the market through measures such as interest rate cuts, reduced purchasing costs, and state guarantees for bond sales by stronger developers, the sector's recovery remains uncertain. Analysts suggest that it may take another one or two years for the market to bottom out, with the possibility of additional defaults in the near future. The situation is further complicated by the spread of distress among developers, including those operating in Hong Kong, indicating that the challenges are not confined to mainland China.
Dec. 22, 2024
Tags: Global
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Thailand's Property Boom Attracts Chinese Investors Amid Rising Fraud Risks
Thailand's real estate market has experienced a significant influx of Chinese investors, who accounted for nearly half of foreign property purchases in 2023. Attracted by affordable international education and lower living costs, many Chinese buyers are investing in cities like Chiang Mai. However, the market's rapid growth has been accompanied by an increase in fraudulent activities. Some investors, unfamiliar with Thai property laws—such as restrictions on foreign ownership of land and individual houses—have fallen victim to scams. For instance, a Chinese investor purchased a villa without realizing that foreigners are prohibited from owning land in Thailand, leading to significant financial losses.
Legal experts warn that the surge in foreign investment has created opportunities for fraudsters to exploit unsuspecting buyers. They advise potential investors to thoroughly understand Thai property regulations and seek professional legal assistance before making purchases. Despite the booming market, the lack of awareness among new investors about local laws has led to increased cases of fraud, underscoring the need for due diligence and caution in Thailand's real estate sector.
Dec. 21, 2024
Tags: Global
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Chinese Students Revitalize Hong Kong's Commercial Property Market
Hong Kong's struggling commercial property sector is experiencing a revival, driven by a surge in Chinese students. Educational institutions are converting office spaces into classrooms, and investors are channeling funds into student accommodations to meet the rising demand from mainland China. This trend has positioned the education sector as a significant contributor to the commercial real estate market, which has been facing challenges due to weak sentiment.
Government initiatives to transform Hong Kong into an international education hub have led to an increase in non-local student quotas, with mainland Chinese students comprising over 77% of this demographic in the latest academic year. This influx has spurred universities to lease substantial office spaces for educational purposes and has attracted investments in student housing. Projections indicate a shortage of 120,000 student beds by 2028, prompting private equity firms and other investors to invest significantly in dormitories. This development offers a positive outlook for Hong Kong's commercial property market, which has been grappling with oversupply and declining rents.
Dec. 19, 2024
Tags: Global
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