(from left:) C H Williams, Talhar, Wong & Yeo Sarawak director Yip Phooi Leng, CBRE | WTW director Paul Brendan Chan, CBRE | WTW (Penang) director Tan Chean Hwa, CBRE | WTW group managing director Tan Ka Leong, director Ungku Iskandar Ungku Ismail, adviser Foo Gee Jen, C H Williams Talhar & Wong (Sabah) director Cornelius Koh and CBRE | WTW associate director of research & consulting Mary Kurien at the launch of CBRE | WTW's 2025 Market Outlook Report at the Kuala Lumpur Golf & Country Club.
PETALING JAYA: The property market outlook for 2025 is “bright,” according to CBRE|WTW Valuation and Advisory Sdn Bhd, driven by strong investments and economic growth.
The property consultancy firm managing director Tan Ka Leong expressed optimism about the market’s prospects for the year, particularly for landed housing in the country.
“We’ll see moderate growth in prices for landed residential units.
“Rising building material costs will push up prices for new houses, and this will also have a ripple effect on secondary market properties,” he told StarBiz on the sidelines of its 2025 property market outlook launched yesterday.
He added that Malaysia’s positive economic performance, reflected in promising gross domestic product growth, would likely translate into higher property prices.
For high-rise residential properties, he noted that performance varies significantly based on location.
“While there are concerns about the high-rise segment overall, certain projects in well-positioned locations are seeing good recovery and price growth,” he explained.
Property developers, he said, are more attuned to market priorities, emphasising quality and strategic locations in their projects.
Reflecting on the challenges posed by the Covid-19 pandemic, he said: “I think we have passed the downturn already.”
Specifically for the Klang Valley, CBRE|WTW associate director of research and consulting Mary Kurien expects 3% to 4% growth in landed residential properties prices, particularly in established areas.
“We’re expecting price increases, especially in established areas like Petaling Jaya, Bangsar, Mont Kiara and Hartamas,” she said.
“This trend is more evident in landed houses and those within gated and guarded schemes. Historically, we’ve seen price increases of about 3% to 4% annually and that’s the range we anticipate for such areas.”
She attributed the rise to land scarcity in prime locations.
“New landed houses in these areas are almost impossible to find. Buyers will need to look further from the city, to places like Semenyih, Rawang, or Puncak Alam,” she explained.
Hybrid work arrangements have also influenced demand for properties further from urban centres.
“With flexible working arrangements, houses in suburban areas have become more attractive. Many now incorporate features like dedicated office spaces, while condos include co-working spaces,” she said.
Kurien noted that increasing costs – particularly for building materials – had significantly impacted new housing developments.
“The cost of materials has pushed up entry prices for new launches, even in areas further from the city. This has a ripple effect, driving up prices for existing properties,” she said.
Despite concerns about the cost of living, Kurien said residential property remains a stable investment.
“Everybody needs a home, and property prices in Malaysia, especially for residential units, are consistently on the rise,” she added.
Commenting on the high-rise residential market, Kurien noted that developers had scaled back launches in recent years to address oversupply.
“We’ve seen fewer high-rise launches, which has allowed for some market correction. However, competition in the high-rise segment remains strong, particularly near mass rapid transit (MRT) stations,” she said.
“During the MRT construction, property value near stations was somewhat affected by the disturbance. But post-completion, these areas have seen active rental and investment activity,” she noted.
Kurien also highlighted the gradual rise of high-rise residential properties in the past decade.
“Previously, landed properties dominated supply, but high-rise units have been catching up. For the first time this year, high-rise residential supply exceeded those of landed properties,” she said.
This trend, Kurien added, is likely to continue.
In the report, CBRE|WTW noted that the supply of landed properties in the Klang Valley increased by a modest 2% year-on-year (y-o-y), with Selangor accounting for 99% of this growth, primarily in Sepang, Klang and Kuala Selangor.
However, incoming supply of landed properties decreased by 14%, indicating a slowdown in new developments.
In contrast, the supply of high-rise residential units grew at a faster pace of 6% y-o-y.
Similar to landed properties, the incoming supply of high-rise units also saw a decline by 4%.
The Klang Valley’s residential overhang situation improved in 2024, with a 7% overall reduction in the third quarter.
High-rise residential units experienced a faster decline in overhang by 10%.
The majority of the overhang consisted of properties priced between RM500,000 and RM800,000, with serviced apartments accounting for 52% of the total high-rise residential overhang units.
