Malaysia Property Market Heats Up

Malaysia’s property market in 2025 remains resilient, with analysts staying positive on the back of strong loan applications and supportive economic growth of about 4–5%. Transaction values continue to grow even as volumes soften slightly, signalling firm prices rather than a downturn.​

Developers are generally targeting higher sales in 2025, helped by sustained domestic demand and improving sentiment after Malaysia hit a decade-high in property activity in 2024. Demand is still concentrated in homes below RM500,000, but the RM500,000–RM1 million segment shows growing strength among higher-income buyers.​

Johor, Singapore Dollar And Cross-Border Demand

Johor stands out as one of Malaysia’s hottest markets in 2025, powered by the Johor–Singapore Special Economic Zone (JS-SEZ) and the RTS Link, which have pushed up residential prices and land values. Some prime Johor Bahru sites have reportedly doubled in value as investors position ahead of the RTS completion and JS-SEZ spillover.​

The strengthening Singapore dollar and high housing costs in Singapore are key drivers of cross-border demand into Johor. Many Singapore-based buyers and Malaysians working in Singapore see Johor as a value play, with larger homes and landed properties available at monthly costs comparable to or lower than small HDB rentals in Singapore.​

Foreign Buyers, Including Singaporeans And Chinese

Foreign demand remains a critical layer of support, with buyers from China topping foreign residential transactions nationally in 1H 2025. In Johor Bahru, both Singaporean and Chinese purchasers are active in high-rise projects like R&F Princess Cove and Country Garden townships, often marketed as package deals alongside units in China.​

Market reports highlight that Singaporean interest in Johor property is “absolutely” still strong, sustained by price gaps versus Singapore, improved connectivity, and the revamped MM2H programme. This foreign interest boosts serviced apartment and condominium segments, where transaction values in Johor have surged by over 20–100% year-on-year in recent periods.​

Opportunities And Risks For 2025–2026

For investors, Johor, Penang and selected growth corridors in Klang Valley are the primary hotspots, backed by industrial expansion, data centre investments and logistics demand. In Johor alone, over MYR164 billion worth of data centre projects were approved in 1H 2025, further anchoring medium- to long-term property demand.​

However, the national market still faces affordability gaps and overhang in older high-rise stock, especially in Kuala Lumpur. Policymakers and analysts warn that while foreign and SGD-driven demand is positive for values, it also risks widening the divide between hot growth markets like Johor and more sluggish or oversupplied areas.