Malaysia’s Property Market Set for Strong Growth in 2025: Experts Highlight Key Drivers

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Malaysia’s property market is set for robust growth in 2025, driven by infrastructure projects like the RTS Link and Johor-Singapore SEZ, creating hotspots and boosting investments.

Kuala Lumpur, 13th Jan 2025, 01.30pm – The Malaysian property market is poised for significant growth in 2025, driven by positive buyer sentiment, robust economic fundamentals, and the catalytic effects of upcoming infrastructure projects and the Johor-Singapore Special Economic Zone (JS-SEZ), according to leading property experts.

Speaking at the launch of CBRE | WTW’s 2025 Market Outlook Report, group managing director Tan Ka Leong emphasized the impact of major infrastructure projects such as the East Coast Rail Line, Johor-Singapore Rapid Transit System (RTS) Link, and Pan Borneo Highway. “To fully leverage the potential of these game changers, development planning and regulations should be updated,” Tan said.

CBRE | WTW’s Group Managing Director, Tan Ka Leong

Transit-Oriented Developments (TODs): The Emerging Hotspots

Savills Malaysia group managing director Datuk Paul Khong highlighted the rising popularity of mixed-use projects near transit-oriented developments (TODs). Key projects like the LRT3 (operational by Q3 2025), RTS Link (2027), and MRT3 (2027) are expected to create property hotspots. “These developments will attract strong investor interest and improve connectivity,” Khong noted.

He added that Malaysia’s economic outlook for 2025 remains strong, with continued growth fueled by strategic investments, a resilient industrial base, and adaptive economic policies. “The property market has seen notable transaction growth, especially in land, industrial, and commercial assets, with RM13.9 billion recorded in major transactions during the first nine months of 2024,” Khong said.

JS-SEZ: A Transformative Catalyst for Johor

The Johor-Singapore Special Economic Zone (JS-SEZ), spanning 3,571 sq km across six cities and townships in southern Johor, is set to transform the region. Olive Property Consultants CEO Samuel Tan highlighted the potential for new factories, housing developments, and increased migration to Johor. “The overhang situation in Johor will ease as more people move in, boosting demand for residential and commercial properties,” Tan said.

AmInvestment Bank Research identified nine flagship zones in the JS-SEZ, including Johor Baru City Centre, Iskandar Puteri, and the Pengerang Integrated Petroleum Complex. The JS-SEZ aims to launch 50 high-value projects and create 20,000 high-skilled jobs in the next five years, with sectors such as logistics, technology, petrochemicals, and energy transition taking center stage.

Momentum Into 2025

Experts predict that the strong momentum from 2024 will carry into 2025. The expansion of transit-oriented developments, coupled with the JS-SEZ’s initiatives, is set to create vast opportunities across Malaysia’s property landscape. With a growing focus on sustainability and inclusivity, Malaysia’s real estate sector is primed for a dynamic and prosperous year ahead.

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