52,936
Residential transactions
2026Q1, down 10.7% year on year
Malaysia Property Research Series 01 | Public Summary
Malaysia Residential Property Research 2026
Demand remains, but purchasing power and product fit are redrawing the market.
RM22.603bn
Transaction value
2026Q1, down 7.8% year on year
+1.7%
Nominal MHPI
Real MHPI was about +0.1%, effectively flat
32,801
Completed-unsold homes
68.5% priced at RM500,000 or below
77.1%
Lower-priced transactions
Homes priced at RM500,000 or below
+11.6%
Housing-loan applications
June 2026 year on year; approvals rose only 2.9%
Central judgement
The market question is no longer how much demand exists, but which demand can transact
Housing need has not disappeared. It becomes an effective purchase only when deposit, monthly payment, other debt, credit assessment, mobility and product conditions align. Resilient nominal prices, weaker transactions, rising inventory and sharper city differences are different expressions of the same market adjustment.
Five findings
Five conclusions that shape the operating view
City performance has diverged
Kuala Lumpur recorded broadly flat residential volume and higher value, while Johor, Selangor and Penang saw both measures decline. A national average cannot replace a city-level view.
A lower price is necessary, but not sufficient
Homes at RM500,000 or below accounted for 77.1% of transactions and 68.5% of completed-unsold residential stock. Location, access, usable space, maintenance cost and financing eligibility still determine whether a unit sells.
Purchasing power depends on financing conditions
The report compares state income percentiles across three combinations of interest rate, loan term, loan-to-value ratio and housing-payment share. The model shows sensitivity; it is not a bank approval decision.
The four focus markets require different operating judgements
High-rise inventory is more concentrated in Kuala Lumpur and Penang. Selangor's income advantage has not prevented transaction contraction. Johor's RTS Link and JS-SEZ catalysts still need time to translate into realised housing demand.
Policy removes selected barriers, not product mismatch
First-home stamp-duty relief, SJKP, MM2H, state access rules and taxes can change cost and eligibility. They cannot create a suitable home, durable rent or exit liquidity.
Evidence snapshot
Nominal price resilience can coexist with weaker liquidity
Residential homes and serviced apartments are separate inventory pools. Transaction value divided by transaction count is also not a constant-quality house-price measure.
National residential indicators, 2026Q1
Year on year; real MHPI uses comparable quarterly-average headline CPI.
Completed-unsold stock, kept separate
Units. The two property categories differ in planning, use and buyer profile.
Full report
What the full research covers
The full edition retains the evidence, purchasing-power model, city comparisons, policy boundaries, scenarios, operating implications and source trail that are not expanded in this public summary.
Market, inventory and prices
Transactions, value, MHPI, launches, sales performance and supply pressure across development stages.
Household purchasing-power model
Income percentiles and sensitivity to rates, loan terms, LTV and housing-payment share.
Four focus markets
Kuala Lumpur, Selangor, Johor and Penang through transaction, inventory, industry and mobility mechanisms.
Policy, foreign buyers and action
First-home support, SJKP, MM2H, state access, taxes, scenarios and a monitoring dashboard.
Research boundary: The model compares conditions; it is not a credit decision, valuation or investment recommendation. Principal sources include NAPIC, DOSM, Bank Negara Malaysia, MIDA, the Ministry of Finance, MOTAC, LHDN and other relevant public authorities.
Copyright and permitted use: This summary is for personal study, research and the recipient's internal reference. It may not be resold, publicly republished, adapted into a commercial product, or used to train, generate or distribute other commercial content. Any permitted citation should identify the report title, publisher and publication date.
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The summary PDF provides the judgement and key figures. The full report includes every chapter, chart, model, method, limitation and source.