Malaysia’s property market experienced significant growth in 2024, with notable transactions across various sectors. According to the National Property Information Centre (Napic), the value of property transactions in the first half of 2024 (1H2024) reached RM105.65 billion, marking a 23.8% increase from the previous year. In total, 311,211 transactions valued at RM162.96 billion were recorded in the first nine months of 2024, reflecting a 6% increase in transaction volume and a 14% rise in value compared to the same period in 2023.
The demand for data centres saw a substantial boost, with numerous deals closing throughout the year. The country is projected to see even further growth in this sector in 2025. Additionally, the completion of key infrastructure projects, such as the Rapid Transit System (RTS) linking Johor Bahru and Singapore, as well as the Johor-Singapore Special Economic Zone (JS-SEZ), is expected to stimulate further economic growth and attract investment into Malaysia’s property market.
The Key Growth Drivers:
Data Centre Growth: Malaysia saw a surge in data centre investments in 2024, driven by the growing adoption of cloud computing and AI technologies.
Johor’s Rise: Johor became an attractive investment destination due to the RTS project and the JS-SEZ, boosting the local economy, particularly in sectors like data centres, industrial real estate, and retail.
Geopolitical Tensions: Despite external challenges such as the US-China trade tensions and the Russia–Ukraine war, Malaysia’s property market remained resilient, supported by domestic policies and foreign investments.
Top Property Deals of 2024
Several significant deals stood out in 2024, with notable transactions in land sales, retail, data centres, and hospitality.
1. Bandar Malaysia Sale – RM12 Billion
The sale of Bandar Malaysia, a 486-acre land parcel in Kuala Lumpur, was rated the top property deal of 2024. In October, the Ministry of Finance sold the land to KLCC (Holdings) Sdn Bhd (KLCCH), a subsidiary of Petronas, for RM12 billion. This transaction is seen as a major step in Malaysia’s long-term urban development strategy, positioning Bandar Malaysia as a future business hub with global connectivity, sustainability, and a mixed-use approach.
The deal is anticipated to generate significant economic activity, attract foreign investments, and redefine urban living, especially with its integration of affordable housing within a primarily commercial development. The future of Bandar Malaysia’s development is highly anticipated as it balances inclusivity with commercial viability.
2. Suria KLCC – RM1.95 Billion
KLCC Property Holdings Bhd acquired the remaining 40% equity interest in Suria KLCC for RM1.95 billion, a strategic move reinforcing its position in Malaysia’s retail sector.
3. Johor Bahru City Square – RM850 Million
The Kuok Group’s Allgreen Properties Ltd bought back a 70% stake in Johor Bahru City Square Mall from Singapore’s GIC Real Estate for RM850 million, marking a significant retail transaction in Johor.
4. Tropicana Gardens Mall and Marriott Courtyard Penang – RM845 Million
Tropicana Corp Bhd sold Tropicana Gardens Mall for RM680 million and Marriott Courtyard Penang for RM165 million to IOI Properties Group Bhd, strengthening IOI’s retail portfolio.
5. Data Centre Transactions
Microsoft: Acquired industrial land for RM402.3 million in Eco Business Park VI, Johor, and RM132.47 million in Pulai for data centre developments.
Sime Darby Property: Entered a 20-year lease deal worth RM5.6 million with Pearl Computing Malaysia for a data centre in Sungai Buloh, KL.
6. Iconic Land Deal – Wisma Damansara
BRDB Developments acquired the iconic Wisma Damansara land for redevelopment, marking a significant deal in Kuala Lumpur’s commercial real estate landscape.
Outlook for 2025
Looking ahead, experts are optimistic about the property market in 2025, supported by:
Economic Growth: Government initiatives, infrastructure improvements, and the recovery of key sectors such as retail, hospitality, and industrial real estate.
Johor’s Continued Growth: The Johor-Singapore Special Economic Zone (JS-SEZ), data centre expansion, and the RTS system will likely make Johor a leading hub for business and real estate development.
Foreign Investment: Malaysia is expected to benefit from increased foreign direct investment, particularly from the US and China, with Johor set to see more developments due to its strategic proximity to Singapore.
The market is also expected to see increased demand for industrial real estate, particularly in high-tech manufacturing sectors like semiconductors, alongside steady growth in retail and hospitality as tourism and consumer spending rebound.
Overall, the Malaysian property market in 2025 is poised for steady growth, underpinned by strategic infrastructure projects and international investment.
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