(From left) Yip, Chan, Chean Hwa, Ka Leong, Ungku Mohd Iskandar, Foo, Koh and Kurien posed with a copy of Market Outlook 2025 after the report presentation.
By: Yip Wai Fong
PETALING JAYA: The Malaysia property market in 2025 is poised for sustained growth as the country's economy continues to expand under robust fundamentals and investors’ confidence, according to real estate services and investment firm CBRE WTW.
According to its Market Outlook 2025 report, Malaysia’s industrial and hotel segments are expected to stand out as key performers. The former is expected to benefit from rising investment in industrial assets, while Malaysia being the ASEAN Summit Chair this year will fuel hotel demands through international delegations, summit events and an influx of business travellers. The expected increase in tourist arrivals will be positive for the hospitality sector as a whole.
During the report presentation, research and consulting associate director Mary Kurien said in Klang Valley, industrial parks are evolving towards high-tech industries, adopting AI-driven solutions, cloud services and green certifications. The residential sector has seen a shift towards more affordable and spatially efficient high-rise living, while the office sector is moving towards sustainable, green-building certified and tech-driven office spaces with favourable lease terms. In the retail sector, Kurien said malls are incorporating diverse dining options and art, cultural and entertainment platforms to maintain their edge.
In Johor, director Paul Brendan Chan said the Rapid Transit System (RTS), Johor-Singapore Special Economic Zone (JS-SEZ) and the Forest City Special Financial Zone are expected to attract further investor interest and positively impact the property sector. As the state also strengthened its position as a data centre hotspot and a key warehouse market, Chan said the overall positive momentum will have a multiplier effect across all property segments in the state.
Director Tan Chean Hwa said that the Penang property market in 2025 is projected to be resilient and stands to benefit from high-impact infrastructure projects such as Penang Silicon Island and LRT Mutiara Line. However, the optimism may be tempered by headwinds from US trade policies under President Trump. In the residential sector, Tan added that Penang will also stand out in 2025 with the state-driven push for green certification for affordable housing projects and encouragement for private sector developers to adopt the same.
In Sarawak, CH Williams, Talhar, Wong and Yeo Sarawak director Yip Phooi Leng said the residential sector is expected to trend upward with an expansion of house-buying groups and foreign residents who participate in the Malaysia My Second Home (MM2H) programme. Meanwhile, the state’s industrial sector is expected to be driven by technologies, manufacturing as well as clean and renewable energy in line with the state’s blueprint. She also expects tourism to continue improving from 4.35 million visitors as of Nov 2024 to 5 million this year, benefiting the hotel sector.
C H Williams, Talhar, Wong & Yeo Sabah director Cornelius Koh said Sabah outlook will remain steady and hopeful as government initiatives such as the Sabah MM2H and a more relaxed bumiputera quota requirement help drive property demand, while infrastructure upgrades such as the airport expansion at Kota Kinabalu and Tawau will spur more tourist arrival.
“CBRE WTW notes a positive outlook for Malaysia's overall market, driven by the country’s steady economic performance, favourable policies and improving market sentiment. However, we encourage all market stakeholders to exercise prudence and adopt responsible strategies in their decisions. By focusing on sustainable growth, avoiding speculative practices and aligning with the broader economic objectives, we can collectively contribute to the stability and resilience of the real estate sector in the long term,” said group managing director Tan Ka Leong.
Also present were valuation and advisory managing director Ungku Mohd Iskandar Ungku Ismail and adviser Foo Gee Jen.
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