JUWAI IQI – MALAYSIA’S 2026 RESIDENTIAL MARKET OUTLOOK SHOWS  HIGHER PRICES, FEWER NEW HOMES 

PRESS RELEASE: JUWAI IQI – MALAYSIA’S 2026 RESIDENTIAL MARKET OUTLOOK SHOWS  HIGHER PRICES, FEWER NEW HOMES

Kuala Lumpur, 3rd December 2025 – The Malaysian market has been healthy this year  with a surge in completed new homes and enough stable demand to absorb many of  those properties, according to insights released today by Juwai IQI Co-Founder and  Group CEO Kashif Ansari. 

Mr. Ansari summed up Malaysia’s 2025 housing market as healthy. He pointed out  stable transaction values, a decrease in additional planned supply, and interest rate  support. 

New House Numbers Jump by 23% 

Mr Ansari said, “We saw a surge in completed units this year. Projects that had been  delayed since the pandemic are now being delivered. 

“Developers are on track to complete 23.4% more new homes this year than in 2024,  yet the market has successfully absorbed much of this wave of completions. The  overhang in serviced apartments in Q3 was 11% lower than a year earlier. 

“Developers are taking a cautious approach to planning new launches for 2026 and  2027. The number of new home construction starts is down 2%, and the number of  new homes on the drawing board that haven’t yet reached the construction stage is  down by nearly 18%. 

“This caution should further improve the market’s health and could push prices up.  Those who have invested in real estate will reap the rewards. 

Price Gains Marked the Start of 2025 

“The Home Price Index jumped by 3.5% in the first quarter, and in fact, prices have not  fallen on an annual basis since at least 2021. 

“Given the huge events that have changed the global outlook since the onset of COVID,  Malaysian residential prices have been remarkably steady. 

“One reason for steadily climbing prices is that interest rates have been supportive.  Bank Negara kept the rates stable for a prolonged period and only this year cut them  for the first time since May 2020. The OPR is now 2.75%, which is supportive but high  enough to prevent inflation. 

2026 Outlook: Stronger Growth and Key Corridors 

“Looking ahead, we see a good environment for homeowners, for developers, and for  long-term investors. I expect more first-time home buyers and an increase in young  upgraders, as new couples who are starting families move out of their first apartments  and into larger properties. 

“There’s a tremendous amount of future growth in the property market. Remember  that more than one out of every four Malaysians is no older than 29 and probably still  yet to buy their first home or investment property. Another quarter of the country is  aged between 30 and 44, which again are prime property-buying years. 

“If there are no global shocks, 2026 could be the best year for the real estate market  since 2019. Next year, we expect gently increasing prices, less new supply, and possibly  interest rates. Nationally, we expect price growth to remain moderate rather than  explosive. Household income gains and the stronger economy are contributing. 

“Our base case for 2026 is slightly faster home price growth, in the 2–4% range. Johor  will be a hotspot, in particular within reach of the RTS and selected Klang Valley MRT/ LRT zones. Prices near these infrastructure projects could run ahead of the national  average. 

“This means that for most Malaysians, we’re not expecting a sudden spike, but a  gradual climb that favours those who buy earlier rather than later. 

“If developers continue to hold off on new construction, buyers could face competition  for attractive properties in the most popular locations. 

Johor Is a Top Regional Hotspot 

“The market is broader than just the Klang Valley, though Kuala Lumpur does remain  strong. Sabah is also seeing tourism-related demand, as well as homes being  dedicated to airbnb activity. 

“The strongest state looks to be Johor, which is benefitting from the special economic  zone and infrastructure investments. In the first half of the year, homebuyers bought  13% more homes in Johor, and Johor prices jumped by 5.7% from a year earlier. 

“Johor benefits from higher cross-border investment from Singapore, which has been  stimulated by the Special Economic Zone, and the new transit investments, especially  the RTS. We estimate the SEZ could add as much as RM19.8 billion to Malaysia’s GDP  within ten years, with much of that being concentrated within Johor itself.   

“Johor’s market will only get stronger after RTS opens. When residents of Singapore see  how easy it will be to travel across the border, it will be hard for them not to embrace  the more enjoyable and affordable lifestyle that’s on offer in Johor. 

Risk Would Come from Possible Economic Shocks 

“Our outlook is positive, so if we had to imagine a negative risk factor, it would have to  be an unexpected economic shock. Something significant enough to hurt jobs,  confidence, and credit conditions what would slow the home market. 

“We don’t foresee such an outcome, and our central expectation is for steady demand,  manageable supply and improving infrastructure. The year 2026 looks bright from the  real estate perspective.” 

-END-

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