By Miichael Yeoh

The Malaysian property market has been through a lot in the last few years — pandemic, inflation, rising construction costs, slow wage growth, and changing buyer behaviour. But as we step into 2025, one thing is clear:

Property is still moving… but the market is no longer the same.
Buyers are more cautious, banks are more selective, and affordability remains a major issue.

Here’s my take on what’s really happening in the residential property and mortgage landscape, and what you should pay attention to — especially if you’re planning to buy, invest, or restructure your loans.

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📈 Long-Term Price Trend: Property Still Moves Up

Whether the market is “good” or “bad”, one fact remains consistent:

Property prices in Malaysia have been rising steadily for the last 20+ years.

Urban areas like Klang Valley, Penang and Johor consistently show appreciation because of:

• population growth
• job concentration
• infrastructure development
• scarcity of prime land

But here’s the catch:
House prices have risen much faster than income, making affordability the No.1 challenge for Malaysians today.

This explains why many young buyers are stuck deciding between renting longer… or compromising on location and size.

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🏘️ What’s Happening in the Market Now?

1. Transaction volume is rising — but buyers are choosy

2024 recorded strong growth in overall property transactions, and 2025 is projected to see single-digit positive growth.
People are buying — but not blindly.

Buyers today compare:

• price per sq ft
• rental potential
• exit value
• access to MRT / LRT
• developer reputation

Gone are the days when anything “new launch” can sell out.
Today, value matters more than hype.

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💰 Mortgage & Financing Trend: Here’s the Real Story

The biggest shift recently is OPR dropping to 2.75%, making borrowing cheaper.

This directly means:

• Lower monthly instalments
• Higher loan eligibility
• Better cashflow for investors

But with great news comes reality…
Banks are approving loans more carefully than ever.

Your CCRIS, CTOS, commitments and even gig-income consistency matter.
If your financial health is not clean, even a low OPR won’t help you.

For many Malaysians, the challenge isn’t interest rate — it’s getting the loan approved.

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🧱 Supply vs Demand: The Affordable Gap

You’re hearing this everywhere:

“So many houses unsold!”
—but at the same time—
“I can’t find any home I can afford!”

Why?
Because the overhang is mainly:

• too expensive for the mass market
• too big (1,000 sq ft and above)
• wrong location

This mismatch will continue unless developers pivot more aggressively into the mid-market segment.

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🧭 What Buyers & Investors Should Look At Now

✔️ If you’re a first-time buyer

This is a golden window.
Low OPR + many choices + developers offering incentives = value for money.

Look for:

• good location > big size
• future MRT/LRT corridors
• reputable developers
• high rental demand areas

✔️ If you’re an investor

Capital gain will still happen — but don’t expect overnight appreciation.
Focus on:

• rental yield
• undervalued areas
• distress or motivated sellers
• T.O.P. projects with ready tenants

The smart investors in 2025 are not speculating.
They’re buying below market value, or in growth corridors, or early in new infrastructure zones.

✔️ If you own multiple properties with loans

This is the best time to:

• refinance
• consolidate debts
• reset your cashflow
• restructure your portfolio

A small adjustment in interest rate can save thousands per year.

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🧩 Conclusion: The Market Isn’t Booming, But It’s Moving

Malaysia’s residential market today is stable, resilient, and buyer-driven.
We’re not in a bubble.
We’re not in a crash.

We’re in a value-driven market, where the winners are:
✔️ informed buyers
✔️ strategic investors
✔️ those who manage their loans wisely

If you understand the trends — and you know how to analyse value correctly — 2025-2026 can be a very profitable year for you.