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Key Insights from NAPIC’s Malaysia Property Market Q1 2025

In 2025, Malaysia’s property market opened with cautious confidence, as highlighted in NAPIC’s Q1 2025 report. Buyers, developers, and investors are recalibrating strategies around affordability, supply management, and resilience.For local investors, this environment offers opportunities to secure quality assets in high-demand areas. At the same time, they must balance rental yields with capital appreciation potential.For foreign investors, Malaysia remains attractive with clear ownership frameworks and relatively low entry costs. Key growth pockets include Kuala Lumpur, Johor Bahru, and Penang, but regulatory and market nuances require careful navigation.Whether you seek rental income, capital growth, or portfolio diversification, these insights will help pinpoint where to invest. We help you identify resilient sectors and position your strategy for today’s evolving landscape.What You Need to Know: 2025 Malaysia Property MarketTransaction Activity: A More Focused MomentumResidential Market OverviewServiced Apartments: Stepping Back to Move ForwardOverall Construction: Solid Starts, Slower DeliveriesAre We Seeing a Realignment or a Quiet Recovery?Is This a Good Time to Invest in Malaysia property?FAQs: Malaysia Property MarketSource: NAPIC JPPHTransaction Activity: A More Focused MomentumNAPIC’s report shows that properties priced under RM 500,000 continue to attract strong demand, particularly in growth-focused locations like Selangor and Johor.This reinforces the appeal of mid-market inventory across Malaysia, especially for first-time buyers and local upgraders.This suggests that home seekers are increasingly using property type filters and comparison tools on international sites and partner sites to assess value before making a move.Transaction activity in Malaysia’s property market is expected to maintain a measured yet resilient momentum in 2025, particularly within the sub-RM500,000 segment. This price band continues to attract strong demand, driven by first-time buyers and local upgraders seeking affordable yet well-located homes, with Selangor and Johor emerging as key growth markets.Moving forward, affordability pressures and ongoing infrastructure development will sustain interest in mid-market properties, while investors should anticipate increasingly selective buyer behavior, with greater reliance on digital platforms, property comparisons, and data-driven decision-making.For foreign investors, while direct participation in the sub-RM500,000 segment remains constrained by minimum price thresholds, opportunities exist in the adjacent RM600,000–RM800,000 bracket, particularly in urban and transit-oriented developments offering strong rental demand and long-term appreciation potential.Source: NAPIC JPPHResidential Market OverviewNew Launches and Supply: Strategic and AlignedResidential construction has taken a more measured path.Completions dropped significantly to 3,614 units in Q1 2025, compared to 7,072 in the previous quarter.Yet new starts increased to 14,761 units, pointing to long-term optimism and more balanced pipelines.QuarterCompletionStartNew Planned SupplyQ1 20245,4945,4585,164Q2 202410,0244,9058,147Q3 202411,16018,60110,096Q4 20247,07210,04716,698Q1 20253,61414,7614,024This shift in strategy reflects a market that's focused on accessing genuine demand and reducing mismatches between supply and expectations.Residential Overhang: A Challenge Being AddressedHigh-end homes remain oversupplied, but developers are responding by launching fewer luxury products and focusing instead on properties that are competitively priced and attractive to local buyers.The shift also aligns with growing demand among foreigners exploring sales in Malaysia, particularly on platforms with clearer locations and pricing filters.Source: NAPIC JPPHServiced Apartments: Stepping Back to Move ForwardServiced apartment completions dipped to 356 units in Q1 2025, down from 1,289 the previous quarter. New planned supply dropped to 498 units, reflecting a conscious pullback by developers.QuarterCompletionStartNew Planned SupplyQ1 2024201945858Q2 20247321,218755Q3 20246891,7401,351Q4 20241,2891,0492,713Q1 20253561,188498Developers are clearly adjusting their expectations and delivery timelines, agreeing with market signals that the supply-demand gap must narrow before new launches resume.Overall Construction: Solid Starts, Slower DeliveriesCompletions across all sectors dropped to 9,329 units, but new starts remained high at 28,344 units, a sign that confidence in the medium term remains intact.QuarterCompletionStartNew Planned SupplyQ1 20247,16821,39111,024Q2 202424,40420,16429,481Q3 202423,74932,23332,103Q4 202426,81432,44827,853Q1 20259,32928,3448,342This reflects a strategic choice to find balance: completing only what’s viable in the short term while keeping a clear line of sight on longer-term goals.Are We Seeing a Realignment or a Quiet Recovery?At first glance, the lower completions and persistent overhang may suggest caution.However, with stronger starts and lower speculative launches, the numbers suggest a comprehensive, data-driven reset.As buyers become more informed and developers become more focused, the market is recovering the right way: by prioritising value, timing, and location.Is This a Good Time to Invest in Malaysia property?Yes, but the Q1 2025 Malaysia property market shows signs of stabilisation, with developers adjusting supply to meet real buyer demand. This environment creates opportunities for investors to enter before supply tightens further or prices rise, particularly in growth locations such as Selangor, Johor, and transit-linked urban areas.While it can be a good time to invest, careful consideration is key — investors should focus on high-demand areas with strong rental prospects and engage a trusted agent to navigate current market dynamics and regulations.FAQs: Malaysia Property MarketWhat is freehold property in Malaysia? Freehold ownership grants perpetual rights, but not total control—under Malaysia’s Land Acquisition Act 1960, the government can acquire property for public use with fair compensation.How much salary to buy a 300k house in Malaysia? To afford a RM300,000 home in Malaysia, a net monthly income of RM3,500–RM4,000 is typically recommended. This is based on a 90% loan margin and a manageable debt service ratio (DSR).Can you get Malaysian citizenship by buying property? No. Malaysia does not offer citizenship through property purchase. Buying property does not qualify foreigners for citizenship or an automatic path to permanent residency. However, foreigners may apply for long-term stay under the Malaysia My Second Home (MM2H) program, but this is not citizenship.Are you looking for ways to start investing in Malaysian real estate? nquire below and let our trusted professionals help you make the right move![custom_blog_form]Continue Reading:The Ultimate Guide For 4 Best Places To Invest in Malaysia6 Expert-Backed Tips for Successful Property Investment in MalaysiaWhy Malaysia is the Perfect Destination for Foreign Investors?

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Juwai Cambodia: Restructured, Rebranded & Ready for the Future! 

JUWAI IQI is pleased to announce the strategic restructuring and rebranding of our Cambodian operations under a new entity: Juwai Cambodia. This transformation marks an important step toward aligning our presence with future growth opportunities, evolving market demands, and international standards.  Juwai Cambodia is a revitalised platform, designed to better serve the Cambodian real estate sector and cross-border investors through a more focused, agile, and brand-aligned approach. As part of this new chapter, we are seeking a committed and entrepreneurial local partner to lead the newly restructured Juwai Cambodia.  This is more than a business opportunity. It is a chance to co-own and build a strong national brand under a globally recognised name, with full strategic support from the wider Juwai IQI network. We welcome expressions of interest from established professionals or emerging leaders in the Cambodian property or investment space.  We are looking for someone with deep local market knowledge and the ambition to take this brand forward. ? To explore this opportunity in confidence, please reach out to: ? info@iqiglobal.com ? 1800 222 155 ? Click here for the websiteJuwai Cambodia Restructured. Rebranded. Ready for Growth. With the Right Partner. Continue Reading: Can Foreigners Buy Property in Cambodia? A Clear Guide to Laws and RegulationsUnlocking Profits: The Untapped Land Opportunities in Cambodia5 Simple Steps to Invest in Cambodia

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Rents Cool Down in Q1 2025, Easing Pressure on Tenants | Juwai IQI

Malaysia’s rental market is finally showing signs of slowing down after more than a year of rising prices!  According to a new report by real estate group Juwai IQI, average home rents either stayed the same or dropped slightly in the first quarter of 2025. The report shows that the average rent across Malaysia fell from RM2,052 in Q4 2024 to RM2,020 in Q1 2025. This is the first time in over a year that rent prices didn’t go up, which is welcome news for many Malaysians, especially those living in big cities like Kuala Lumpur. Kuala Lumpur, which had some of the biggest rent increases last year, is now seeing prices level off.  This means less pressure on renters who have been struggling to keep up with rising living costs. What’s Behind the Change? Juwai IQI Group CEO, Kashif Ansari, explained the trend clearly: “What we’re seeing is a healthy cooling-off period after an aggressive rental surge in late 2024. Economic indicators remain strong, but the market is adjusting as supply and demand find new balance.” He also added,  “Stable rental prices bring predictability. That’s good not just for tenants, but also for developers and property investors looking to plan long-term.” Juwai IQI Group CEO, Kashif AnsariKashif mentioned that while the general rental market is slowing, luxury properties are still in demand, especially in areas like the Klang Valley.  He said, “Economic indicators remain strong, but the market is adjusting... while rents have slowed down, demand in the luxury and high-end rental market remains resilient.” Why This Matters This slowdown in rent growth could help ease the cost of living for many people.  With prices no longer climbing as fast, renters may find it easier to plan their finances and manage other expenses. Looking Ahead Juwai IQI believes this trend could continue through the year, depending on inflation and interest rates.  If the market stays balanced, renters and landlords alike can expect a more stable year ahead. Juwai IQI was featured in The Malaysian Reserve. Juwai IQI is the world-renowned property company that provides insights on property, locally and globallyClick below to get more expert property insights from our blog!MORE INSIGHTS

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Malaysia’s OPR Reduced to 2.75% After Two Years of Stability

Version: CN, MYOPR 2025: Latest updatesAs of 9 July 2025, Bank Negara Malaysia (BNM) announced its latest revision to the Overnight Policy Rate (OPR), reducing it from 3.00% to 2.75%. This marks the first rate cut in two years.Previously, BNM had maintained the OPR at 3.00% since its 25 basis point hike on 3 May 2023.With this adjustment, the ceiling and floor rates of the OPR corridor are now set at 3.00% and 2.50%, respectively.Overnight Policy Rate (OPR)OPR 2025: Latest updatesWhat is Overnight Policy Rate (OPR)?Why Is the OPR System in Place?What Does This Mean to Home Buyers and Businesses?Is This a Good Time To Buy a Home?What is Overnight Policy Rate (OPR)?Before we dive in deeper, let's have a look at what OPR is all about.The Overnight Policy Rate (OPR) is an overnight interest rate set by Bank Negara Malaysia (BNM), which determines the interest rate for financial institutions to lend funds to one another. Depending on the bank’s lending activities as well as the customers’ deposits and withdrawals, banks have varying levels of cash reserves on a daily basis. Thus, banks with a cash shortage often borrow from banks with larger cash reserves in order to balance the available levels of cash, which in turn ensures a stable banking system.Why Is the OPR System in Place?Maintaining this balance is crucial to keep financial systems functioning, as well as meet the liquidity requirements set by BNM. To ensure banks have a steady amount of available cash, the interest rates fixed by the OPR provides a structure for monetary direction on a national scale. Due to its significance in banking operations, the OPR can affect the economy in various ways, including employment and inflation.What Does This Mean to Home Buyers and Businesses?As a homebuyer or business owner, you’ll likely want to know how this rate change affects your loans.When the OPR is higher:Loan costs increase, as banks will revise their interest rates.Housing and commercial loan interest rates also rise.This makes access to capital more difficult and adds pressure to existing loans.When the OPR is lower (like now – 2.75%):Loan costs decrease.Monthly instalments become more affordable.Loan eligibility improves, and property demand may increase.For example, in 2020, Malaysia recorded its lowest-ever OPR at 1.75% due to the impact of the pandemic.This latest rate cut is seen as a proactive move to support the economy amid low inflation (around 1.2%) and slower GDP growth (approximately 4.4% in Q1 2025).The increase in OPR results in:1. Higher monthly installment paymentsThe higher interest rates make the cost of borrowing more expensive, resulting in a hike in monthly installment payments.2. Longer loan tenureThanks to the increase in the monthly installment amount, the repayment period will be extended if the old sum is maintained.Since most housing loans in Malaysia are Full Flexi Loans or Semi Flexi Loans, this means that your monthly payment will fluctuate with the rise and fall of OPR.The chart below shows a rough idea of the changes in monthly payments:Loan AmountInterest Rate 3.00%Interest Rate 2.75%Monthly SavingsRM500,000RM1,924RM1,846–RM78RM600,000RM2,309RM2,215–RM94RM700,000RM2,693RM2,584–RM109*Note that this information is only for reference – interest rates and percentages vary from bank to bank. Please check with your bank for the latest updates.Is This a Good Time To Buy a Home?Yes, now is a buyer-friendly environment if your goal is to secure a home for own stay or as a long-term investment. The rate cut has reduced financing costs and there is a “window” of negotiation leverage before the market stabilises and potentially turns upward again.The recent OPR cut to 2.75% creates a more favourable environment for property buyers. Lower borrowing costs mean home loans are now more affordable, reducing monthly repayments for many. At the same time, Malaysia’s housing market remains stable, with mid-market properties (below RM500,000) continuing to attract steady demand, while some higher-end segments show more negotiability.While inflation is low (around 1.2%) and GDP growth is expected to be moderate (~4% in 2025), this provides buyers an opportunity to secure better loan terms. Developers are also offering incentives like rebates and free legal fees, adding further value.However, buyers should remain cautious if they are looking for short-term gains, as price growth is likely to stay modest through 2025. Overall, this is a good time to buy a home for own stay or as a long-term investment, especially if finances are stable and the property is in a strong location.It's high time we start investing, so if you're interested in getting connected with the experts in the property industry, drop us your details and we will connect you as soon as possible![hubspot portal="5699703" id="85ebae59-f425-419b-a59d-3531ad1df948" version="undefined" type="form"]Continue reading:Bank Negara’s Unchanged OPR Ensures Housing Market Stability Guide To Finding The Right Home Loan: Flexi, Semi-Flexi Or Fixed Term, Which Is The Best For You?Real Estate 101: Navigating Home Financing through Loan-to-Value and DSR Explained

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