QualampurAnalysts say the recent decrease in Malaysia’s overnight policy rate (OPR) is expected to encourage the demand for moderate property in the second half of 2025, especially in the mid-range segment, while the high-end market remains strong.
Bank Negara Malaysia’s decision to reduce OPR by 2.75 percent on July 10 has already increased property scenes and home loans inquiries. IQI co-founder and CEO Kashif Ansari said, “This deficiency improves power. An RM 500,000 home-financed borrower can save around RM66 per month, add up to 30-year loans to add up to RM23,000.”
Despite a general recession in the property market, according to the National Property Information Center (NAPIC), there was an increase of 5.6 percent in transactions in luxury houses above RM1 million. Demand is firm in Kuala Lumpur, Penang, and Johor Bahru, operated by rich buyers, who are looking for major locations.
Residential prices in major urban centers remain stable, with an increase in the Clang Valley recording price and increase the condomineium 1.8 to 2.3 percent. JLL Malaysia Managing Director Jamie Tan said, “These figures reflect continuous demand and market stabilization after-passemic recovery.”
However, with the cost of increasing in the sub-RM500,000 segments and the decline in the amount of transactions due to stable wages, strength challenges are faced. Developers and policy makers are urged to focus on increasing the supply in the RM200,000 range in RM200,000, where the demand is high but the availability is limited.
Infrastructure MRT and LRT stations continue to run property values along with homes taking premium prices near MRT and LRT stations. According to a study by the University Pendidican Sultan Idris, the properties within 400 meter MRT stations on the Sungai Buloh-Kajang line were sold at 9.5 percent premium post-complexity.
The property market of Johor supported by Johor-Singapore Special Economic Zone (JS-SEZ) and upcoming Rapid Transit System (RTS) link is also concluded. The prices of apartments in strategic fields such as Bookit Chagar have increased by 20.4 percent.
Analysts emphasized overall urban planning and frequent policies to maintain market growth. “Developers should align projects with real community needs, not only profit margin,” tan said. – Bernma
