The property market remained resilient in the first half of the year, according to the National Property Information Centre’s (Napic) report.

FIABCI-Malaysia – the Malaysian chapter of the International Real Estate Federation – noted that while challenges remain, positive indicators across several subsectors point to a cautiously optimistic outlook for the rest of the year.

In a press statement, FIABCI-Malaysia president Dr Yu Kee Su said in terms of market activity, residential properties continued to anchor the market, supported by demand in both landed and high-rise segments.

He said FIABCI-Malaysia viewed this as evidence of consumer confidence and the sector’s adaptability.

According to the report, the market witnessed 23,380 new residential units launched in the first half of the year, of which 24% were sold.

Landed homes saw better absorption (28.5%) compared to high-rise developments (12.9%).

Yu said unsold completed units remained a concern, with significant stock in certain states and within the mid-range price categories (26,111 units, valued at RM16.44bil).

For commercial property, rental indices for offices and Klang Valley shopping centres showed measured growth.

The Malaysian House Price Index (MHPI) recorded modest year-on-year growth, signalling sustained value appreciation.

Yu noted some key concerns. A combined 58.7% of new units launched were priced at RM500,000 and below, indicating developer focus on the affordable segment. However, only 24% of all 23,380 new units were sold.

The bulk of unsold completed stock (36.1%) was below RM300,000, suggesting at this price point, units were either in the wrong locations or did not meet buyer expectations.

High-rises made up 58.5% of unsold units. The serviced apartment sector, with 17,883 unsold completed units, remained a particular challenge.

Purpose-built office market continued to face headwinds, while shopping complex occupancy dipped slightly.

Yu stressed the need for more targeted strategies.

“We must build the right units in the right places. We urge greater collaboration between policymakers, local authorities, and developers to ensure planning permissions align with actual market demand and affordability thresholds,” said Yu.

He said the property market was at an inflection point.

“The resilience is there, but it must be channelled correctly.

“By moving from broad-based policies to targeted, data-led interventions, we can effectively address this mismatch and steer the market towards a more sustainable and balanced recovery,” Yu concluded.