MALAYSIA’S residential construction sector recorded notable growth in the first quarter of 2025, led by a surge in housing completions and new construction starts, according to the Valuation and Property Services Department (JPPH).
Director-General Abdul Razak Yusak said completed units rose by 30.2 per cent year-on-year to 9,329 in Q1 2025, up from 7,168 in the same period last year. Housing starts climbed by 32.5 per cent to 28,344 units compared with 21,391 units in Q1 2024, suggesting continued strength in development activity.
Speaking during the release of the Property Market First Quarter 2025 report via Facebook Live, Abdul Razak said, “Although the property transactions began on a slower note, the robust pace of construction activity and the increase of residential new launches were supported to balance the property market growth and sustain its positive momentum in 2025.”
Planned new developments, however, declined to 8,300 units from 11,000 a year earlier, reflecting some caution among developers.
Despite this, residential new launches more than doubled to 12,498 units in Q1 2025, compared with 5,585 units a year ago. The sales performance of these launches stood at 10.8 per cent.
Meanwhile, overall property transactions fell slightly, with the number of transactions declining by 6.2 per cent to 97,772, while total transaction value dropped 8.9 per cent to RM51.42 billion, down from RM56.47 billion in the first quarter of 2024.
“The continuous government support through initiatives such as the Program Residensi Rakyat (PRR), Projek Rumah Mesra Rakyat (RMR), and strategic infrastructure development have been a key driver in accelerating construction activity,” said Abdul Razak.
He also pointed to broader development initiatives such as the Forest City Special Financial Zone, the Johor–Singapore Special Economic Zone (JS-SEZ), and the newly implemented duty-free zone in Pulau Satu, Forest City, as examples of policies beginning to bear fruit.
The residential overhang stood at 23,515 units worth RM15 billion in Q1 2025, a marginal increase of 1.6 per cent in volume and 7.7 per cent in value from Q4 2024.
The occupancy rate for shopping complexes edged up to 79 per cent from 78.8 per cent in the same quarter last year, indicating stable performance in the commercial retail segment.
The Malaysian House Price Index (MHPI) reached 225.3 points in the first quarter, translating to an average house price of RM486,070. This marks an annual growth rate of 0.9 per cent.
“The growth of the property market is expected to remain resilient driven by positive momentum in the construction sector and a continued rise in newly launched residential units,” Abdul Razak added.
He noted that special financial and infrastructure incentives under initiatives like the JS-SEZ and Forest City are expected to further support long-term expansion in the sector. - May 9, 2025
