Recover Stronger: Market Movement & Madani government policies
We’re already halfway through 2025, and looking back at the progress made in 2024, it’s clear that the real estate market has responded positively to key policy introductions.
The Malaysia Madani concept, introduced on 19 January 2023 by Prime Minister Anwar Ibrahim and his administration, serves as a comprehensive policy framework aimed at transforming the nation into a more "civilized" society and sustainable development. The introduction of policies aimed at boosting the economy across all sectors has started to show promising results,
According to NAPIC, market activity for 2024 has been robust. In 2024, the property market recorded 420,545 transactions worth RM232.30 billion—marking the highest level of activity in the past decade with a 5.4% increase in volume and an 18.0% rise in value and most sectors have gone up in numbers with each sub-sector showing growth. (source: NAPIC)
Some figures in a glimpse for 2024, the residential sub sector remains the largest contributor, accounting for 62.0% of the total transaction volume and 46.0% of the overall transaction value. Commercial was up in volume by 13.6% and value surged by 51.6%. Development Land & Others grew 9.7% in volume and 32.7% in value.
Industrial activity increased by 7.7% in volume and 16.4% in value, driven by high demand for vacant industrial land. Agriculture showed growth of 4.1% in volume and 4.8% in value. (source: NAPIC)
According to the states across Malaysia, 10 out of 16 states inclusive of 3 Wilayah of Putrajaya, Labuan and Kuala Lumpur has recorded an increase in transaction volume year-on-year. That is 63% of the total states with growth and only 6 states namely Sarawak, Penang, Negeri Sembilan, Terengganu, Sabah, and Perlis—recorded slightly lower transaction 2024 volumes.
As 2025 unfolds, the continuity of Madani policies will further reinforce market stability, with strategic incentives and people-centric measures that continue to shape buyer confidence, industry innovation, and long-term housing goals.
Stamp Duty Exemption: Malaysian citizens buying their first home (priced up to RM500,000) continue to enjoy full stamp duty exemption on both the instrument of transfer and loan agreements until December 31, 2025.
High-Tech Industrial Hub: A new high-tech industrial area is being established in Kerian, Northern Perak, aimed at expanding the region’s Electronics & Electrical (E&E) cluster and boosting local economic activity.
Affordable Housing Boost (PPR): An allocation of RM546 million will drive the continuation of 36 Program Perumahan Rakyat (PPR) projects – including a new project in Kluang, Johor – along with an additional 15 PPR projects, benefiting approximately 5,100 new residents.
Expanded Housing Units (Rumah Mesra Rakyat): RM358 million is dedicated to constructing 3,500 housing units under the 14 Program Rumah Mesra Rakyat, further enhancing affordable home options.
Housing Credit Guarantees: Up to RM10 billion in guarantees under the Skim Jaminan Kredit Perumahan (SJKP) will support around 40,000 borrowers, easing access to home financing.
MM2H : There’s also a relaxation of requirements for the Malaysia Rumah Keduaku (MM2H) program, making property ownership even more accessible.
Flat 4% Stamp Duty: A new policy imposes a flat 4% stamp duty on the transfer of land ownership documents for non-citizens and foreign-owned companies. This measure excludes individuals with permanent residency status in Malaysia, aiming to streamline property transactions and stabilize market conditions.
Special Financial Zone Designation: Forest City was integrated into the national development strategy as a Special Financial Zone (SFZ), allowing the government to roll out targeted fiscal incentives and tax breaks specifically for the area.
As we look ahead to the next few months of 2025, the promising performance metrics of last year highlight how stable economic conditions and targeted government initiatives have driven a significant recovery and growth surge in Malaysia's real estate market. With this strong foundation, the remainder of 2025 looks set to be an exciting and dynamic period of continued progress.
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