Malaysia’s property market hits record high in 1H2024
Malaysia’s property market achieved a significant milestone in the first half of 2024 (1H2024), with total transaction value exceeding RM105 billion from 198,906 recorded transactions. This marks the highest growth in value and volume in the past five years. According to Deputy Finance Minister Lim Hui Ying, the volume of transactions rose by 8.0%, while transaction value surged by 23.8% compared to the same period in 2023.
This growth reflects the strength of Malaysia’s economy, which expanded by 5.9% during the period. Lim emphasized that this performance is aligned with the national economic transformation goals outlined in the Madani Economy framework. “The property market’s positive trajectory was driven by robust transaction performance across all subsectors, supported by government initiatives in Budget 2024,” Lim said.
Among the key government initiatives is the housing credit guarantee scheme (SJKP), which offers up to RM10 billion in guarantees. The Madani government’s efforts, including improvements to the Malaysia My Second Home (MM2H) programme and the development of the Johor-Singapore Special Economic Zone (JS-SEZ), have also contributed to market growth. Additionally, the Special Financial Zone (SFZ) in Forest City has spurred interest in the property sector.
Fiscal policies, such as the continued stamp duty exemptions for first-time home buyers and the steady overnight policy rate (OPR) of 3.0%, have further bolstered confidence in the market. According to the 2024 First Half Property Market Report by the National Property Information Centre (Napic), all subsectors experienced growth, particularly the commercial sector with a 22.4% increase in activity and a 41.5% rise in transaction value.
The residential subsector also saw a 6.1% rise in transactions and a 10.4% increase in value, while overhang units declined to 22,642 from 25,816 in the previous period, reflecting improved market conditions.
The Malaysian House Price Index (IHRM) for 1H2024 recorded an average price of RM471,918 per unit, a modest annual growth of 0.9%. Most states experienced positive growth, though Kuala Lumpur saw a slight dip of 0.8%. Detached, semi-detached, and terrace homes remained stable, while high-rise apartments saw a marginal decline.
