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KUALA LUMPUR (May 14): Malaysia’s property market activity remained stable with a moderate growth in the first quarter of 2026 (1Q 2026), with transactions totalling 89,966 worth RM51.9 billion, according to the Valuation and Property Services Department (JPPH) Director-General Abdul Razak Yusak.
Value declined a marginal 0.6% while volume fell eight per cent compared with 1Q2025, he said in a statement posted on JPPH, Finance Ministry's Facebook at the launch of the 1Q2026 Property Market Report.
"Although the trajectory of construction activity has begun to soften, construction activity performance at the completion stage for residential and commercial shop units remains robust, registering growth," the statement said.
"This resilient market activity reflects the industry's confidence in Malaysia's ongoing economic restructuring under the MADANI Economy framework, amid the West Asia conflict and global economic uncertainties.
“Government initiatives and continuous support have strengthened the property market's growth trajectory and delivered sustained benefits to the public," the statement said.
Abdul Razak said the residential subsector continued to dominate the overall property market activity, accounting for 58.8% of total transactions, with nearly 53,000 transactions worth more than RM22 billion.
Housing priced RM300,000 and below continued to dominate the market, with 27,209 transactions, or more than 50% of total housing transactions.
“Compared with 1Q2025, transaction performance of all subsectors — residential, commercial, industrial, agricultural, development land and others — has slowed, declining from one to 10.7%,” he said.
The number of completed houses rose by more than 30% to 12,905 units versus 9,329 units in 1Q2025.
Shop and stratified shop units rose by more than 100%, while completed serviced apartments saw more than a 40% decline to 1,888 units versus a year ago.
All subsectors under the planned new supply category showed mixed trends, with housing and shop units rising by more than 50%, to 12,852 units and 823 units, respectively.
Serviced apartments’ planned new supply rose to 6,961 units versus 4,024 units last year.
The number of housing units launched declined to 9,112 units against more than 12,000 units a year ago.
The 1Q2026 Malaysian House Price Index (MHPI) was 235.2 points, with an average price of RM507,533 per unit and a 1.7% annual growth rate.
He said all states recorded positive growth ranging from 0.3% to 7.2%, except for Negeri Sembilan and Sabah, which contracted by 0.2% and 2.3%, respectively.
Terraced houses, high-rise units, and semi-detached houses remained stable with positive growth of 2.2%, 1.3%, and 2.2%, respectively; detached houses declined 0.7%.
The 1Q2026 recorded an overhang, or unsold completed housing, of 32,801 units worth RM16.37 billion, a 7.6% rise in volume but a 7.7% decline in value compared to 4Q2025.
Unsold completed serviced apartments rose to 19,263 units, worth RM16.52 billion, versus 18,752 units worth RM15.42 billion in 4Q2025.
Shopping complexes’ occupancy rate remained at 79%, while privately owned purpose-built offices occupancy saw a slight rise to 72.3% against 72% a year ago, he said.
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