Malaysia: Cost of living index, world average = 100: The latest value from 2021 is 56.21 index points, a decline from 57.56 index points in 2017. In comparison, the world average is 79.81 index points, based on data from 165 countries. Historically, the average for Malaysia from 2017 to 2021 is 56.89 index points. The minimum value, 56.21 index points, was reached in 2021 while the maximum of 57.56 index points was recorded in 2017.

The house price index in Malaysia reached 216.5 in 2023, an increase of more than twofold compared to the base index of 100 in 2010. The price index, which measures the average change in prices over a period of time, indicated that the value of housing in the country continued to increase every year since 2014. Recovery in the housing market Malaysia’s real estate industry was significantly hit by the COVID-19 pandemic but showed signs of recovery in 2022 when the restrictions were finally lifted. Subsequently, the housing market also signaled a positive recovery, with the transaction value of the residential sector growing by approximately 22 percent in the same year. Going into 2024, despite uncertainties in the global economy, the housing market in Malaysia is likely to experience more growth. Demand for more affordable housing Although the real estate market is recovering and the inflation rate in the country has slowed down, the average price of houses reached nearly 450,000 Malaysian ringgit in 2022, an increase of around 12,000 Malaysian ringgit compared to the previous year. According to a survey conducted in the capital city, Kuala Lumpur, the majority of potential home buyers had a housing budget of less than 250,000 Malaysian ringgit. As of 2024, the Malaysian government already has several low-cost housing schemes catered for the B40 lower-income and M40 middle-income groups. Nevertheless, with the rising residential prices and current cost of living, there will be more demand for affordable housing options among home buyers.

Key information about House Prices Growth

• Malaysia house prices grew 1.4% YoY in Dec 2024, following an increase of 4.3% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2000 to Dec 2024, with an average growth rate of 4.3%.
• House price data reached an all-time high of 14.3% in Dec 2012 and a record low of 0.2% in Sep 2020.

Inflation Rate in Malaysia decreased to 1.20 percent in May from 1.40 percent in April of 2025. This dataset provides - Malaysia Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The Malaysian residential property market, valued at $22.41 billion in 2025, exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) of 5.90% from 2025 to 2033. This growth is fueled by several key drivers. A burgeoning population, particularly within urban centers like Kuala Lumpur, Johor Bahru, Seberang Perai, and George Town, is creating strong demand for housing across various segments. Increased urbanization and economic development contribute significantly to this demand, with a rising middle class seeking improved living standards and investment opportunities in real estate. Government initiatives promoting affordable housing and infrastructure development further stimulate market activity. The market is segmented by property type (apartments & condominiums, landed houses & villas) and key cities, reflecting diverse preferences and price points. While the market faces challenges like fluctuating interest rates and material costs, the long-term outlook remains positive, driven by ongoing economic growth and sustained population increase. Major players like SP Setia, IOI Properties, and UEM Sunrise are shaping the landscape through large-scale developments and innovative projects. The segment of apartments and condominiums consistently dominates the market share due to affordability and location advantages in urban areas. Landed properties, including houses and villas, maintain a significant presence, appealing to those seeking larger spaces and a more private lifestyle. The geographical distribution of the market reveals Kuala Lumpur as the leading city in terms of property value and transaction volume, reflecting its status as the economic and cultural hub of the nation. However, other major cities like Johor Bahru, benefitting from its strategic location and industrial growth, are also experiencing substantial market expansion. Competition among developers is intense, necessitating innovative designs, sustainable practices, and strategic location choices to attract buyers. The market's resilience amidst economic fluctuations underscores the enduring appeal of residential property as a long-term investment and essential need. Recent developments include: December 2022: The south-east Asian real estate technology company, The PropertyGuru Group, has finalized the acquisition of iProperty Malaysia. Given that two brands (PropertyGuru and iProperty) are merging, they currently have a huge duty. The acquisition enables them to concentrate on what they believe is necessary to support their clients, and they aim to provide them with even more value., April 2022: Global real estate firm Knight Frank Malaysia expands its presence in the residential property market in Malaysia with the acquisition of Property Hub Sdn Bhd.. Notable trends are: Increase in Urbanization Boosting Demand for Residential Real Estate.

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Residential Real Estate Market Size 2025-2029

The residential real estate market size is forecast to increase by USD 485.2 billion at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, fueled by increasing marketing initiatives that attract potential buyers and tenants. This trend is driven by the rising demand for housing solutions that cater to the evolving needs of consumers, particularly in urban areas. However, the market's growth trajectory is not without challenges. Regulatory uncertainty looms large, with changing policies and regulations posing a significant threat to market stability. Notably, innovative smart home technologies, such as voice-activated assistants and energy-efficient appliances, are gaining traction, offering enhanced convenience and sustainability for homeowners.
As such, companies seeking to capitalize on the opportunities presented by the growing the market must navigate these challenges with agility and foresight. The residential construction industry's expansion is driven by urbanization and the rising standard of living in emerging economies, including India, China, Thailand, Malaysia, and Indonesia. By staying abreast of regulatory changes and implementing innovative marketing strategies, they can effectively meet the evolving needs of consumers and maintain a competitive edge. These regulatory shifts can impact everything from property prices to financing options, making it crucial for market players to stay informed and adapt quickly.

What will be the Size of the Residential Real Estate Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic housing market analysis, small flats continue to be a popular choice for both investors and first-time homebuyers, driven by affordability and urban growth. International investment in housing projects, including apartments and condominiums, remains strong, offering attractive investment returns. Real estate syndication and property management software facilitate efficient property ownership and management. Real estate loans, property insurance, and urban planning are essential components of the housing market, ensuring the development of affordable housing and addressing the needs of the middle class and upper middle class. Property disputes, property tax assessments, and real estate litigation are ongoing challenges, requiring careful attention from stakeholders.
Property search engines streamline the process of finding the perfect property, from studio apartments to luxury homes. Real estate auctions, land banking, and nano apartments are innovative solutions in the market, while property flipping and short sales provide opportunities for savvy investors. Urban growth and community development are key trends, with a focus on sustainable, planned cities and the integration of technology, such as real estate blockchain, into the industry. Developers secure building permits, review inspection reports, and manage escrow accounts during real estate transactions. Key services include contract negotiation, dispute resolution, and tailored investment strategies for portfolio management. Financial aspects cover tax implications, estate planning, retirement planning, taxdeferred exchanges, capital gains, tax deductions, and maintaining positive cash flow for sustained returns.

How is this Residential Real Estate Industry segmented?

The residential real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period. The sales segment dominates the global residential real estate market and will continue to dominate during the forecast period. The sales segment includes the sale of any property that is majorly used for residential purposes, such as single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences. With the growing population and urbanization, the demand for homes is also increasing, which is the major factor driving the growth of the sales segment. Moreover, real estate firms work with developers to sel

In 2023, the average price of houses in Malaysia was at approximately 467,000 Malaysian ringgit, an increase of nearly 15,000 Malaysian ringgit compared to the previous year. This showed a steady upward trend of the housing price since 2018. Increase in residential transaction value The residential real estate market in Malaysia suffered the impact of the COVID-19 pandemic and saw a significant drop in residential transaction value in 2020. Nevertheless, with demands for housing rising among Malaysians, the market quickly recovered in 2020, and the transaction value reached more than 100 billion Malaysian ringgit in 2023. The need for more affordable housing Despite the growth in the residential real estate industry, the continuous increase in housing prices has become a challenge for many Malaysians to afford a home. Around 69 percent of Malaysians surveyed in 2024 said that they did not have enough savings to purchase a property. To address this issue, the current government introduced affordable housing schemes for the lower- and middle-income groups in June 2023.

Housing Index in Malaysia decreased to 224.20 Index in the fourth quarter of 2024 from 228.30 Index in the third quarter of 2024. This dataset provides - Malaysia House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2023, Malaysian employees between the ages of 40 and 44 years old earned the highest average monthly salary, at ***** Malaysian ringgit. With a retirement age of just 60 years old, Malaysian workers could look forward to earning more monthly average wage starting from around 40 years old. Economic outlook Malaysia is one of the biggest and strongest economies of South-East Asia, with a relatively low unemployment rate. The average monthly salary steadily increased from ***** Malaysian ringgit in 2014 to ***** Malaysian ringgit in 2023. Employees with a university degree could expect to earn almost twice as much. Can wages keep up with the cost of living? However, when seen in the context of rising living costs, wages in Malaysia have not been able to keep up. Despite having a relatively low inflation rate, prices have still gone up. Malaysians spent more than ** percent of their income on housing and food. In May 2022, the Malaysian government increased the minimum wage to 1,500 Malaysian ringgit monthly, or 7.21 Malaysian ringgit hourly, in the hopes of easing the financial burdens of its citizens.

Young adults face many significant challenges to their financial well-being. The rising cost of living and unstable economies have impacted how they consume, manage, and save monthly income to maintain their standard of living. Hence, exploring the financial well-being of young adults in Malaysia is an intriguing and relevant research topic that deserves examination from multiple perspectives. This study aims to investigate how these three factors, namely financial knowledge and locus of control with financial behaviour as a mediator, are correlated with the financial well-being of low-income young adults in Malaysia. A total of 520 young adults from North, Central, South, East zones in Peninsular Malaysia and East Malaysia were randomly chosen using a multi-stage sampling technique as the sample of this study. Data in this study were obtained using a set of questionnaire-based survey through cross-sectional study and then scrutinized using IBM SPSS (Statistical Package of Social Science). This study discovered that financial knowledge, internal and external locus of control, and financial behaviour were significantly correlated with the financial well-being of low-income young adults. The findings also demonstrate that financial behaviour mediates the correlation between financial knowledge, both internal and external locus of control, and financial well-being. This study is one of the very few important studies that explore the link between financial literacy, locus of control, financial behaviour, and financial well-being among low-income young adults. This study also found an interesting and noteworthy fact regarding the impact of the minimum monthly wage policy on highly educated young adults in Malaysia, which is worth discussing and needs to be alerted to the policymakers and leaders of the country. Therefore, the findings of this study can be utilized as a starting point by policymakers, government organizations, and non-governmental organizations to create new initiatives aimed at raising financial well-being among the younger generation.

The Malaysian real estate market, valued at $36.76 billion in 2025, is projected to experience robust growth, driven by a compound annual growth rate (CAGR) of 6.64% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, a burgeoning population and increasing urbanization are creating consistent demand for both residential and commercial properties. Government initiatives aimed at boosting infrastructure development and attracting foreign investment further stimulate market activity. The residential sector, encompassing villas, apartments, and other housing types, is expected to remain a significant contributor to overall growth, driven by rising disposable incomes and a preference for improved living standards. Meanwhile, the commercial sector, including offices, retail spaces, hospitality, and industrial properties, will benefit from a growing economy and increasing foreign direct investment. However, potential challenges exist. Interest rate fluctuations and regulatory changes could impact market stability. Moreover, maintaining sustainable development practices and addressing affordability concerns within the residential market will be crucial for long-term, healthy growth. The segmentation of the market reveals strong performance across various property types. Major players like Hartamas Real Estate, SP Setia Bhd, and IJM Corporation Berhad are leading the development and investment activities, shaping the competitive landscape. While the provided data focuses on Malaysia, future analysis could benefit from a deeper regional breakdown within the country, identifying key growth pockets and understanding localized market dynamics. The forecast period of 2025-2033 presents significant opportunities for investors and developers who can successfully navigate the market’s inherent challenges and leverage emerging trends such as sustainable construction and technology-driven property management solutions. The long-term outlook for the Malaysian real estate market remains positive, with substantial potential for continued expansion fueled by favorable economic conditions and a proactive government approach. This comprehensive report provides an in-depth analysis of the Malaysian real estate market, covering the historical period (2019-2024), base year (2025), and forecast period (2025-2033). It offers invaluable insights into market trends, key players, investment opportunities, and challenges for investors, developers, and stakeholders in the Malaysian property sector. With a focus on high-search-volume keywords like Malaysia property market, Malaysian real estate investment, Kuala Lumpur property prices, and Malaysia residential real estate, this report is designed for maximum visibility and accessibility. Recent developments include: July 2023: Sentral REIT had entered into a deal with MRCB to acquire the 27-storey Menara CelcomDigi in Petaling Jaya for RM450 million. Sentral REIT had announced that the acquisition will be funded with cash raised through a combination of equity and debt funding exercises., September 2023: Malaysia's SkyWorld, developer of the well-known Genting SkyWorlds Theme Park, has acquired 5,300 square meters of land in Ho Chi Minh City, its first land acquisition in Vietnam. SkyWorld will spend VND350 billion ($14.5 million) on acquiring 100% of the Vietnamese firm's shares.. Key drivers for this market are: 4., Increasing demand for green construction to reduce carbon footprint4.; Introduction of technology for manufactruing the of building construction material. Potential restraints include: 4., High cost of purchasing the equipment for development and manufacturing of various construction material. Notable trends are: Oversupply Causing Problems.

This statistic shows the average inflation rate in Malaysia from 1987 to 2024, with projections up to 2030. In 2024, the average inflation rate in Malaysia amounted to about 1.83 percent compared to the previous year. Malaysia's economy is slowly recovering The inflation rate is the annual rate of increase of a price index, normally the consumer price index over time. If the same item bought today for 1 U.S. dollar is bought again one year from now, but for 1.03 U.S. dollars, then the inflation rate is at 3 percent. Generally, a low inflation rate is sought by every country, and a rate of 3 percent, as is estimated for Malaysia in the next few years, is considered low. However, there was a slight rise in Malaysia’s inflation rate, from close to 2 percent in 2010 to a little over 3 percent in 2011. In 2012, it dropped back down to its normal rate, but future estimates predict a slight increase once again. Perhaps this increase has come from initial worries concerning the country’s slowing economy as the country’s GDP growth slowed from 7.43 percent in 2010 to 5.19 percent in 2011, or its negative budget balance in relation to GDP which was at its recent worst in 2010 at -4.66 percent. At the same time, the country’s national debt was also rising, but predictions show that this trend is reversing. Yet, the economic outlook and inflation rate still appear stable for the future of Malaysia, and the inflation rate is below the global inflation rate. Furthermore, the country’s GDP continues to rise and totaled 326.93 billion U.S. dollars in 2013.

The ASEAN manufactured homes market is experiencing robust growth, fueled by several key factors. The region's burgeoning population, rapid urbanization, and increasing demand for affordable and sustainable housing are driving significant market expansion. A CAGR exceeding 5% indicates a consistently strong trajectory, projected to continue through 2033. Key drivers include government initiatives promoting affordable housing solutions, increasing construction costs of traditional homes, and a growing preference for quicker construction timelines associated with manufactured homes. The market is segmented by type (single-family and multi-family) and geographically across major ASEAN nations, with Malaysia, Thailand, Singapore, and Indonesia representing substantial market shares. While data for precise market sizing is not fully provided, considering the strong growth in other comparable markets and the region's demographics, a reasonable estimation would place the 2025 ASEAN manufactured homes market value in the range of $1.5 to $2 billion USD. The increasing adoption of sustainable building materials and technologies within the manufactured home sector is further contributing to market growth. However, challenges remain including stringent building codes and regulations in some areas, potential supply chain disruptions, and varying levels of consumer awareness regarding the benefits of manufactured housing. The competitive landscape is dynamic, featuring both established international players and regional companies specializing in modular and prefab construction. Companies like ModularCraft, Moderna Homes Pte Ltd, and Karmod are establishing strong market presence, offering a variety of designs and construction services. Further growth will depend on overcoming the aforementioned challenges through effective market education and strategic collaborations. Specific market share distribution across countries within ASEAN will depend on factors including economic development, government policies, and local consumer preferences. While a precise market breakdown is unavailable, we can reasonably assume that Indonesia and the Philippines, owing to their larger populations, will represent significant portions of the market in the forecast period. Continuous innovation in designs, materials, and construction processes is essential for companies to maintain a competitive edge within the growing ASEAN manufactured homes market. Recent developments include: September 2022: Scandinavian Industrialised Building Systems (SIBS) has invested over RM200 million to set up its second manufacturing facility at the Penang Science Park North in Simpang Ampat, Malaysia which boosts the production of modular construction materials. This expansion project is anticipated to increase the production lines to approximately four times more than the current production lines, March 2022: Sampangan (building system manufacturer) built a carbon tech modular home in Indonesia. This is a pilot project for a carbon concrete building system that is affordable for low-income communities. It is estimated to be 40 percent cheaper than conventional affordable housing in the market. The simplicity of design, modularity, knockdown system, and lighter weight would also enable low-income communities that generally do not have formal construction knowledge to build their own homes, and not depend on expensive professional contractors and developers.. Notable trends are: Rapid Urbanization in ASEAN Countries Boosts the Demand for Manufactured Homes.

Consumer Price Index CPI in Malaysia increased to 132.10 points in February from 131.40 points in January of 2024. This dataset provides the latest reported value for - Malaysia Consumer Price Index (CPI) - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

According to a survey on Malaysian millennials' saving behavior conducted in May 2019, both savers and non-savers found it difficult to save due to the rising cost of living, with 68 and 61 percent share of respondents respectively. In comparison, six percent of respondents in each category preferred spending their excess income to saving it.

In 2021, there were around 70 thousand millionaires living in Malaysia. This figure is projected to increase to more than 130 thousand in five years’ time. Should the Malaysian economy continue its less than robust growth, however, this figure might have to be revised.

A positive outlook for the wealthy in Malaysia
2020 was not a good year for both the high-net worth individuals and ultra-high net worth individuals (UNHWI) in Malaysia. Compared to 2019, most were optimistic that the global economy in that year was more conducive to preserving and growing their clients' wealth as a majority of private bankers and wealth advisers in Malaysia reported increases in client wealth in that year. However, the HNWIs and UNHWIs live a life far removed from the average Malaysian. In 2019, only 3.9 percent of adults in Malaysia have wealth exceeding 100 thousand U.S. dollars. By comparison, this figure was 49.4 percent in neighboring Singapore.

Excesses of the ultra-rich
In the past year, the Malaysian public has been exposed to the excesses of the rich and powerful through the 1MDB scandal. This saw the then Prime Minister Najib Razak being accused of embezzling from state funds. The media widely publicized the seizure of luxury handbags belonging to Najib’s wife, each of which costs was more than the average Malaysian’s monthly salary. The public’s distaste for Najib’s extravagant lifestyle was so apparent that when his election rival, Mahathir Mohd, was photographed wearing four-dollar sandals, his picture went viral on social media.