Key trend indicators in the Malaysia’s Property Market for 2024 as we head into 2025.
With just two months left in 2024, it’s time to dive into how the property market has evolved over the past year. From transaction volumes and market value to sector-specific insights, let's look at the review of the market’s performance and trends .
The Malaysian property market activity has shown a notable uptick in activity in 2024, marking a year of growth. Let’s break down the numbers: Transactions: Overall, the market recorded 198,906 transactions, a 5.3% increase year-on-year. The cumulative value of these transactions reached RM105.65 billion, representing a substantial 23.8% growth compared to the first half of 2023.
What does it denote then? It highlights a growing interest and confidence in the property market across various sectors, signalling positive momentum for both buyers and investors.
Who Led the Market?
The property market in Malaysia is divided across five main sub-sectors, each playing a unique role in the market’s growth this year:
Residential: Dominating the landscape, the residential sector accounted for 61.3% of total transactions, contributing 46.8% of the overall market value. This strong performance emphasises the ongoing demand for residential properties.
Commercial: Accounting for 10.9% of transaction volume and a significant 22.4% of transaction value, the commercial sector is solidifying its place as a strong investment option, especially in urban areas.
Industrial: Although smaller in volume at 1.9%, the industrial sector held an impressive 12.8% of market value, reflecting a high-value investment trend in industrial real estate.
Agricultural: This sector made up 19.5% of transaction volume but contributed only 9.2% to the market value, indicating lower value per transaction but steady activity, likely in rural areas.
Development Land & Others: With a 6.4% share of transaction volume and 8.8% in market value, this category continues to serve as a niche but important sector, often appealing to long-term investors and developers.
Where are the Property Hotspots Across Malaysia in 2024
Across Malaysia’s regions, certain areas emerged as property transaction hotspots. Here’s the regional breakdown of transaction volume:
Central Region: Leading with 47,763 transactions, the Central Region made up 24.0% of all property transactions, fueled by demand in urban hubs such as Kuala Lumpur and Selangor.
East Malaysia: This region followed with 17,880 transactions, accounting for 9.0% of total market activity.
East Coast: With 32,896 transactions (16.5%), the East Coast saw healthy activity, driven by affordable properties and a growing local market.
Northern Region: A strong performer, the Northern Region recorded 51,486 transactions, representing the highest share at 25.9%, likely led by high activity in Penang and neighbouring states.
Southern Region: The Southern Region posted 48,885 transactions (24.6%), with robust interest in areas like Johor, which are well-positioned for growth.
From the hotspots, lets now jump into the price range of transactions overall
Below RM300,000: Representing 6.7% of transactions, this range primarily caters to affordable housing.
RM300,001 - RM500,000: Accounting for 14.8% of transactions, this range serves the middle-income segment looking for comfortable, budget-friendly homes.
RM500,001 - RM1 million: The largest share at 19.6% of transactions, this range includes a variety of property types, appealing to higher-income buyers.
Above RM1 million: Representing 5.3% of transactions, the high-end market remains active, reflecting interest from affluent buyers and investors.
The Malaysian property market has shown consistent growth in both volume and value:
Volume: Since the first half of 2020, transaction volume has been on a steady incline, signalling a recovering and expanding market.
Value: Since 2021, there has been a significant boost in market value, particularly evident in the first half of 2024, driven by high-value transactions in the commercial and industrial sectors.
Sentiment and What’s Next?
As we wrap up the year, there’s much anticipation around how the market will close in the final months. Stay tuned for an in-depth review of 2H 2024, where we’ll uncover the emerging trends and potential shifts in the property landscape. With positive growth and resilience, Malaysia’s property market shows strong potential as we step into 2025, promising new opportunities for both buyers and investors.
With steady demand, increasing values, and strong regional performances, the market is well-positioned as we transition into 2025.
Source: NAPIC
