JLL Malaysia Report: Malaysian Property Sector Strengthens

JLL Malaysia Report: Malaysian Property Sector Strengthens

Reports by analysts are great. Make friends with top RENs to know earlier

When it comes to the stock market, Insider information can be a legal issue. However, if we like to have some understanding about the property market in advance of any market reports, we could also ask our good friends who are in the industry too. Whatever transactions they could close would be reflected in the numbers maybe 3 months later. When market is hot, total transactions increase and our real estate negotiator friends would be the first to feel this. Somehow it seems there were more buyers. Somehow buyers were more willing to proceed with the deal faster versus thinking and waiting.

My friendly real estate negotiator in Penang told me that some properties are now super quick to get a tenant. He showed me his customer just asked to find a tenant and he showed me the tenant paid deposit a day after. WOW. These kind of information would tell us that the demand for the properties in that particular area is increasing fast. Make friends yeah.

However, if we want to have a bigger picture or an overview of the whole market, then perhaps reading what analysts say would be a great start. The below is what JLL Malaysia has said just a few days ago. Briefly, it’s positive.

Article in theedgemalaysia.com. Malaysia’s property market continued to strengthen in the third quarter of 2025 (3Q2025), with residential activity holding steady and demand for industrial and data centre assets expanding, JLL Malaysia said in the JLL 3Q2025 press conference for the Malaysian property sector on Tuesday.

JLL Malaysia managing director Jamie Tan highlighted that recent measures such as the Budget 2026 and the agreement between Malaysia and the United States on reciprocal trade will further bolster Malaysia’s economic outlook.

Meanwhile, property overhangs have continued to fall from pandemic highs. The state with the highest overhang, Johor, with 63% in 2021, was down to about 21% in 1H2025, said Tan. Article in theedgemalaysia.com.

Continued to strengthen means…?

It means the transactions continue to increase or demand for property is stable or increasing. When transactions continue to increase, the prices would usually inch upwards too. Ask ourselves. Anyone would like to sell their property at a lower price than the price they paid for? This is why every transaction is usually at a higher price UNLESS of course the buyer himself / herself is desperate and just wanted to let go at any price, then the transacted price would go lower.

Just need to remember that the total for these types of desperate sellers are not many and will not skew the total transactions value. If the desperate sellers are many, then the market has turned negative. Perhaps it’s best to rethink entering and better start identifying great underpriced opportunities instead.

Property overhangs have continued to fall from pandemic highs means…?

This meant that if that property overhang is still unsold, it’s highly likely that the particular overhang property will never be sold… The reason is because total overhang has dropped so much from pandemic until today. This meant that a lot of the overhang properties which people find to be of value has been sold within the 4 years stated in the report. Maybe the developers could have even provided good discounts too. However, moving forward, we better start focusing on what’s available and good. Opportunities within the overhang may now be limited as the best and most attractive would have already been transacted.

Happy understanding and taking the right action.

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