Malaysia property market remains resilient with RM105.12bil transactions in 1H 2026 – Amir Hamzah
KUALA LUMPUR: Malaysia’s property market remained resilient, recording 187,320 transactions worth RM105.12 billion in the first half of 2026 (1H 2026), Finance Minister II Datuk Seri Amir Hamzah Azizan said.
Malaysia's property market demonstrated resilience in the first half of 2026, with 187,320 transactions valued at RM105.12 billion, according to Finance Minister II Datuk Seri Amir Hamzah Azizan. This performance was consistent with Malaysia's robust economic growth, which saw a 6.0% increase in GDP during the second quarter. Despite minor adjustments, the market remained steady, driven by stable transactions, price fluctuations, and active construction activities.
This stability was further bolstered by the nation's monetary policy, as the overnight policy rate (OPR) remained fixed at 2.75%, instilling confidence in investors and buyers.
In 1H 2026, 27,832 new residential units were introduced, resulting in a 16.6% sales performance. The Malaysia House Price Index stood at 234.7 points, with an average house price of RM506,317 per unit, showcasing a modest annual growth rate of 0.9%. Meanwhile, the commercial property market bolstered the overall economic resilience, with the private and government sectors' office occupancy rates reaching 78.5% and 77.9%, respectively, compared to 77.8% and 78.7% in 1H 2025.
The industrial property segment also grew by 3.8%, registering 3,932 transactions worth RM14.78 billion, paralleling the robust expansion of Malaysia's manufacturing sector, which grew by 7.3% in the second quarter of 2026.
During 1H 2026, residential subsector transactions comprised 59.3% of total property dealings, accounting for 44.8% of the value, totaling RM47.11 billion. Despite the market's robustness, there were 33,094 completed but unsold residential units, valued at RM17.78 billion, compared to 30,471 units worth RM17.73 billion in the first quarter of 2025.
When asked about the outlook for the property sector in the second half of 2026, Amir Hamzah stated that a positive labor market, characterized by low unemployment and rising wages, was anticipated to sustain demand for property. Additionally, government measures aimed at alleviating the cost of living, such as minimum wage policies and targeted assistance programs, would enhance Malaysians' disposable income and bolster homebuyer confidence.
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