Property Market Update

Malaysia Property Transactions Fall 8% in Q1 2026 as House Prices Continue to Rise

Malaysia recorded 89,966 property transactions worth RM51.09 billion in the first quarter of 2026, according to the latest national property market release by the Valuation and Property Services Department and the National Property Information Centre. Compared with the first quarter of 2025, the number of transactions declined by 8%, while the total transaction value recorded a smaller year-on-year decrease of 0.6%. The difference between transaction volume and transaction value indicates that fewer properties changed hands during the quarter, although the overall value of completed deals remained comparatively stable. Residential property continued to dominate the national market, while Malaysia’s average house price rose to RM507,533. At the same time, new residential launches declined and the number of completed but unsold residential units increased.

1. Malaysia Records 89,966 Property Transactions in Q1 2026

Malaysia recorded 89,966 property transactions worth RM51.09 billion during the first three months of 2026.

According to the Valuation and Property Services Department and the National Property Information Centre, transaction volume declined by 8% compared with the first quarter of 2025.

The total value of transactions recorded a smaller year-on-year decline of 0.6%.

This means that while fewer properties changed hands during the reporting period, the overall monetary value of completed transactions remained relatively stable.

JPPH director-general Sr Abdul Razak Yusak described the property market as recording moderate performance amid continuing global economic uncertainty.

Construction activity also showed signs of weakening during the quarter, although completed construction within selected residential and commercial categories continued to record growth.

2. Residential Property Remains the Largest Market Segment

Residential property remained the largest component of Malaysia’s property market, accounting for 58.8% of all transactions recorded in the first quarter of 2026.

Nearly 53,000 residential property transactions worth more than RM22 billion were completed during the quarter.

Properties priced at RM300,000 and below accounted for more than half of the residential transaction activity recorded during the period.

The figures show that lower-priced homes continued to form a substantial part of Malaysia’s residential market.

However, the overall decline in transaction volume indicates that the market entered 2026 at a more moderate pace compared with the corresponding quarter of the previous year.

Financing accessibility, household affordability, employment conditions and the availability of suitable properties continued to influence buyers’ ability to complete purchases.

3. Average Malaysian House Price Reaches RM507,533

The Malaysian House Price Index increased by 1.7% year on year to 235.2 points in the first quarter of 2026.

The national average house price reached RM507,533 per unit.

Most Malaysian states recorded annual house-price growth of between 0.3% and 7.2%.

Negeri Sembilan and Sabah recorded price declines of 0.2% and 2.3% respectively, while average house prices in Perak remained unchanged.

By property type, terraced houses and semi-detached houses recorded the strongest annual price growth. Both categories increased by 2.2%.

Prices of high-rise residential properties increased by 1.3%, while detached-house prices declined slightly by 0.7%.

The increase in the overall house price index occurred despite the reduction in national transaction activity.

This indicates that the property market did not move uniformly across every state, property type and price category. Transaction numbers weakened, but completed sales in several market segments continued to support moderate price growth.

4. New Residential Launches Decline to 9,112 Units

Property developers launched 9,112 new residential units during the first quarter of 2026.

This was lower than the more than 12,000 residential units launched during the corresponding period in 2025.

The new residential launch segment recorded a sales performance rate of 11.5% during the quarter.

Residential construction starts also fell substantially.

A total of 8,243 residential units began construction during the first quarter of 2026, compared with more than 28,000 units in the first quarter of the previous year.

Construction starts for shop properties and serviced apartments declined by more than 20% and 40% respectively.

At the same time, the number of residential units within the planned supply pipeline increased by more than 50% to 12,852 units.

Planned serviced-apartment developments increased to 6,961 units, compared with 4,024 units previously.

The figures show a difference between developments entering active construction and projects that remain within the planning pipeline.

While current construction starts weakened, planned future supply continued to expand within selected property categories.

5. Completed Unsold Residential Inventory Increases

Malaysia’s completed but unsold residential inventory increased during the first quarter of 2026.

NAPIC recorded 32,801 completed but unsold residential units with a combined value of RM16.37 billion.

The number of units increased by 7.6% compared with the previous quarter, although their total value declined by 7.7%.

The increase means that more completed residential units remained available without recorded sales at the end of the reporting period.

However, national unsold-property figures cover different states, price categories, property types and individual developments.

The national figure should not be interpreted as evidence that every residential market or development experienced the same level of unsold supply.

6. Unsold Serviced-Apartment Supply Also Rises

The serviced-apartment segment also recorded an increase in completed unsold inventory.

A total of 19,263 completed serviced apartments valued at RM16.52 billion remained unsold at the end of the first quarter of 2026.

This compared with 18,752 units worth RM15.42 billion in the fourth quarter of 2025.

Nearly 60% of the completed unsold serviced apartments were reportedly priced between RM500,000 and RM1 million.

The largest concentrations of unsold serviced apartments were recorded in major markets including Johor, Kuala Lumpur and Selangor.

The figures represent completed units that remained unsold during the reporting period. They do not include every property available in the subsale market or units retained by existing individual owners.

7. Commercial Property Occupancy Remains Stable

Occupancy levels within major commercial property categories remained relatively stable during the quarter.

The national occupancy rate for shopping complexes remained at 79%.

The occupancy rate for privately owned purpose-built offices increased slightly to 72.3%, compared with 72% in the corresponding quarter of 2025.

The national figures indicate relatively stable occupancy across the two commercial categories.

However, individual performance may differ considerably depending on the building, location, tenant profile, age of the property and surrounding commercial environment.

8. Housing Support Measures Continue Under Budget 2026

The Malaysian government maintained several measures intended to support housing demand and first-home ownership.

The allocation for the Housing Credit Guarantee Scheme was increased to RM20 billion, with the programme expected to support approximately 80,000 homebuyers.

The scheme is intended to assist eligible buyers who may experience difficulty obtaining conventional housing financing, including applicants without fixed or regular salary documentation.

The full stamp-duty exemption on instruments of transfer and housing-loan agreements for eligible first-time buyers purchasing residential properties priced up to RM500,000 has also been extended until the end of 2027.

The exemption can reduce selected upfront transaction costs for eligible purchasers.

However, applicants must still meet the relevant programme requirements and the credit-assessment standards of participating financial institutions.

The availability of a government guarantee or stamp-duty exemption does not automatically mean that every applicant will receive financing approval.

9. What the Q1 2026 Figures Show

Malaysia’s first-quarter property figures present a mixed national picture.

Transaction activity declined, new residential launches recorded a relatively low sales performance rate and completed unsold property inventories increased.

Residential construction starts also fell substantially compared with the first quarter of 2025.

At the same time, the national average house price continued to record moderate growth, total transaction value remained comparatively stable and residential property continued to account for most market activity.

The figures do not show a uniform national decline or increase.

Different states, property types and price segments continued to record different levels of demand, price movement and available supply.

NAPIC said the pace of property market expansion was showing signs of slowing but expected the sector to remain resilient with support from Budget 2026 measures, infrastructure development and programmes introduced under the MADANI Economy framework and the Thirteenth Malaysia Plan.

Further national property market releases will provide additional information on whether the lower transaction volume recorded during the first quarter continues through the remainder of 2026.

10. Frequently Asked Questions

How many property transactions were recorded in Malaysia in Q1 2026?

Malaysia recorded 89,966 property transactions during the first quarter of 2026.

What was the total value of Malaysia’s property transactions?

The total transaction value was RM51.09 billion.

How much did property transaction volume decline?

Transaction volume declined by 8% compared with the first quarter of 2025.

Did Malaysian house prices decline in Q1 2026?

No. The Malaysian House Price Index increased by 1.7% year on year, bringing the national average house price to RM507,533.

Which residential property types recorded the strongest price growth?

Terraced houses and semi-detached houses recorded annual price growth of 2.2%, the strongest among the residential property categories reported.

How many new residential units were launched?

Developers launched 9,112 new residential units during the quarter.

How many completed residential units remained unsold?

NAPIC recorded 32,801 completed but unsold residential units valued at RM16.37 billion.

Are first-time buyers still eligible for stamp-duty exemptions?

Eligible first-time buyers purchasing residential properties priced up to RM500,000 may receive a full stamp-duty exemption on the transfer and housing-loan instruments until the end of 2027, subject to the applicable requirements.

Disclaimer: This article provides general property-buying information and does not constitute legal, financial or loan advice. Laws and contractual arrangements may differ according to the property type, location and transaction. Buyers should obtain advice from qualified professionals based on the actual documents involved.