“Affin Hwang Research forecasts RM21.5 billion in property sales for Malaysia in 2025, citing industrial demand, policy support, and infrastructure projects amid global economic uncertainty.“
Kuala Lumpur, 14th Apr 2025, 11.20am – Malaysia’s property market is projected to record moderate growth in 2025, with total sales expected to hit RM21.5 billion, according to Affin Hwang Investment Bank Research. However, the sector faces external headwinds linked to geopolitical uncertainties in the United States.
Affin Hwang Research warned that ongoing concerns over artificial intelligence (AI) diffusion policies under President Joe Biden, and the possibility of a shift under a potential Donald Trump administration, may dampen multinational data centre expansion plans in Malaysia — a growing pillar in the country’s property and industrial landscape.
Despite this, the research house maintained an “overweight” call on the Malaysian property sector, citing resilient fundamentals supported by:
- Industrial-led demand recovery
- Improved connectivity
- Supportive government policies
Key Drivers and Sector Outlook
In its latest report, Affin Hwang Research pointed to robust housing demand, infrastructure expansion, and strategic regional growth initiatives as the main catalysts driving long-term sector momentum.
“With increasing demand and a gradual rise in average selling prices, we anticipate profit margins to improve moving into 2025,” the report stated.
Top developers expected to benefit from the positive outlook include:
- Eco World Development Group Bhd
- Sime Darby Property Bhd
- IOI Properties Group Bhd
2024 Performance: Strong Sales, But Softer Absorption Rates
The Malaysian property sector delivered RM19.3 billion in sales in 2024, driven largely by homes priced below RM600,000. However, absorption rates dropped from 40% in 2023 to 37% in 2024, even as new launches surged to 75,784 units, the highest since 2017.
Additionally, developer share of residential transactions slipped to 17%, down from 22% in 2023, according to data from the National Property Information Centre (NAPIC).
Despite these signs of moderation, developers under Affin Hwang’s coverage outperformed the market, thanks to strong residential demand and growth in the industrial property segment.
2025 Growth Catalysts: Policy Support and Infrastructure
Developers also ramped up supply by 24% in 2024, reflecting a bullish outlook on market conditions and confidence in policy continuity.
Affin Hwang expects 2025 growth to be further supported by several government initiatives, including:
- Full stamp duty exemption for first-time homebuyers on property transfers and loan agreements
- Flat 4% stamp duty on certain property transactions
- Relaxed criteria under Malaysia My Second Home (MM2H) to attract foreign investors and high-net-worth individuals
Positive Market Sentiment Expected to Persist
“We reaffirm our ‘overweight’ rating on the property sector,” the research house said, citing:
- Improved market sentiment
- Revival of large-scale infrastructure projects, especially in Johor
- Anticipated strengthening of the ringgit in 2025
- Strong sales performance among listed developers
With a blend of local resilience and strategic policy support, Affin Hwang Research believes Malaysia’s property market remains well-positioned to weather external shocks while pursuing long-term growth.
