Property transactions fall 8.9pc to RM51.42b in Q1 2025 amid rising unsold homes
In the Q1 2025 Real Estate Market Report released today, Valuation and Property Services Department director-general Abdul Razak Yusak said the residential sub-sector remained the largest contributor, with over 59,000 transactions valued above RM24 billion, according to a report today by Free Malaysia Today.
The industrial segment saw a slight year-on-year growth of 0.3 per cent, while the agriculture and commercial sectors declined by 10.6 per cent and 5.4 per cent respectively.
Despite the slowdown in transactions, construction activity surged in Q1 2025, with 28,344 properties beginning construction, up from 21,391 units in Q1 2024.
The serviced apartment segment recorded a 100 per cent increase in construction starts, jumping from 5,458 units to 14,761 in Q1 2025.
New residential launches also more than doubled to 12,498 units compared to 5,585 units a year earlier.
The Malaysian House Price Index inched up 0.9 per cent to 225.3 points, with average house prices at RM486,070 per unit.
All states recorded moderate price increases of between 0.3 and 6.9 per cent, except Sabah, Sarawak and Kuala Lumpur, which posted a 2.4 per cent drop.
Completed but unsold homes, or residential overhang, rose to 23,515 units valued at RM15 billion, compared to 23,149 units worth RM13.94 billion in Q4 2024.
The overhang for serviced apartments fell 6.7 per cent to 18,246 units, with a corresponding 6.9 per cent drop in value to RM14.61 billion.
Razak said initiatives such as the Forest City special financial zone, the Johor-Singapore special economic zone, and Pulau Satu's duty-free status helped reduce the serviced apartment overhang in Johor to 5.6 per cent in Q1 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
31 minutes ago
- Malay Mail
Strong response for TVET courses with 60,000 applicants, says Wong Kah Woh
TAIPING, Aug 2 — Approximately 60,000 applications have been received so far for enrolment in Technical and Vocational Education and Training (TVET) courses at vocational colleges nationwide. Deputy Education Minister Wong Kah Woh said the strong response reflects the growing appeal of these courses as a pathway for skills development among young people. 'We currently have a capacity of 17,000 places across 86 vocational colleges nationwide. Various programmes are being developed from time to time to strengthen vocational colleges, enhance practical skills, and expand on the job training opportunities for TVET graduates,' he told reporters after officiating the Taiping Air Festival 2025 at Tekah Airport here today. Wong, who is also the Taiping member of parliament, said the employability rate of TVET graduates has reached 99 percent in recent years, based on available reports. 'This is a remarkable achievement. We want our vocational graduates to have the opportunity to further their studies or secure stable employment based on the skills they have acquired,' he said. — Bernama
Free Malaysia Today
an hour ago
- Free Malaysia Today
Impose Unexplained Wealth Order to curb graft among elite, says ex-MP
Former Klang MP Charles Santiago said Malaysia needs a law to force individuals to explain how they obtained wealth beyond their known income. PETALING JAYA : Former Klang MP Charles Santiago has urged the government to introduce an Unexplained Wealth Order (UWO) to tackle illicit wealth and systemic corruption among the elite. Citing official estimates, Santiago said Malaysia lost RM277 billion to fraud, procurement abuse, and illicit flows between 2018 and 2023, or RM55 billion annually, that could have funded schools, hospitals, and food aid. He pointed to the UK's UWO model, which recovered £62.9 million (RM390 million) in a single year through the order and related civil actions. 'Malaysia can do the same, recover stolen wealth without dragging cases for decades in court,' he said in a series of posts on X. UWOs allow authorities to compel individuals to explain how they acquired assets that appear disproportionate to their known income, even without a completed criminal case. Malaysia does not currently have a UWO framework. The existing laws, such as the MACC Act and the Anti-Money Laundering Act, allow investigators to request asset declarations and freeze accounts, but only after a case is opened. Santiago's remarks came after Prime Minister Anwar Ibrahim told the sons of former prime minister Dr Mahathir Mohamad to return any wealth they cannot justify. But he said unexplained wealth should not be 'about one family or the fallout of the Turun Anwar rally'. He said ordinary Malaysians are made to prove their income for aid or loans, while the wealthy often escape scrutiny. 'Unexplained wealth shouldn't depend on who's in power. Malaysia needs clear legal triggers that require individuals to prove how they obtained assets beyond their known income. 'Without it, justice is just politics,' he said.
Malay Mail
2 hours ago
- Malay Mail
Big Oil's big reckoning: Why energy companies must reinvent or fade — Ahmad Ibrahim
AUGUST 2 — The global energy business is at a crossroads. The old certainties that once kept oil and gas companies flush with profits are fast evaporating. Rising climate pressures, aggressive carbon targets, volatile oil prices, and the unstoppable march of renewable energy are rewriting the rules of the game. In Malaysia, this new reality has landed squarely at Petronas' doorstep. The national oil company recently announced substantial job cuts, joining a long list of global oil majors trimming operations to stay afloat. But here's the hard truth: job cuts alone won't save them. The problem isn't just about leaner operations — it's about an outdated business model in a world that's moving on. For decades, the business model was simple: extract, refine, sell. High demand and a few strategic geopolitical disruptions kept prices buoyant, while oil companies banked billions. Those days are over. With more than 140 countries pledging to reach net-zero emissions by mid-century, demand for fossil fuels is approaching a long, irreversible decline. Even the world's largest fund managers now factor sustainability risks into investment decisions, increasingly avoiding companies perceived as climate laggards. Covid-19 delivered a brutal wake-up call. Energy demand plummeted. Oil prices crashed. Petronas, like its global peers, was forced into difficult decisions. The recent job cuts are not isolated belt-tightening, but early symptoms of an industry forced to rethink its very reason for being. Sure, trimming overheads can shore up quarterly numbers. But it won't future-proof the business. Energy companies can no longer afford to think like fossil fuel producers; they must start behaving like integrated energy providers. The future belongs to companies that can offer clean, reliable, and affordable energy solutions — and that means going well beyond oil and gas. Some oil majors have already taken bold steps. BP is repositioning itself as an integrated energy company, investing heavily in renewables and electric vehicle charging networks. Total has rebranded as TotalEnergies, reflecting its diversified energy portfolio. Even ExxonMobil, once a vocal sceptic of climate risks, is now pumping money into carbon capture and low-carbon solutions. Despite the stand taken by President Trump, there is no stopping the transition away from fossil fuels. Petronas has made initial moves into solar energy and green hydrogen, but these efforts need to be scaled rapidly. The longer it waits, the harder the catch-up will be. Experts agree on five moves energy companies must make. To stay profitable — and relevant — energy companies need more than incremental tweaks. They need reinvention. The future is clean energy. Solar, wind, hydrogen, and energy storage are where the growth lies. Energy companies should aggressively diversify their portfolios before being left behind. The skills used in offshore drilling, mega-project management, and complex logistics are transferable. These companies can lead in offshore wind, large-scale hydrogen, and carbon capture projects. Industrial clients and governments increasingly demand integrated, low-carbon energy options. Packaging natural gas, renewables, and carbon offset services is a smart, future-ready play. Workforce transformation is key. The energy workforce must pivot from traditional oilfield roles to clean tech, digital energy systems, and smart grid management. Developing integrated energy parks, waste-to-energy systems, and rural electrification projects not only creates new revenue streams but also builds public trust and national resilience. The energy transition isn't a distant risk — it's here. And it's accelerating. The companies that survive won't be the ones clinging to the past but those bold enough to shape the future. For Petronas and its global peers, this is a defining moment. Reinvent, diversify, and lead the transition — or watch profitability, relevance, and public support steadily erode The choice is clear. The clock is ticking. Since oil and gas is essentially about mining. The closest option that Malaysia should consider is rare earth metals. The country is holding substantial deposits of this new critical metals group. Exploration studies have uncovered their presence in most of the states of the country. But extracting them requires technologies which must consider their environmental impacts. But processing them is not an issue since Malaysia has many years of world class experience at Lynas. Despite all those time-wasting baseless concerns, Lynas survived. A Petronas like model should be just right if Malaysia is to effectively harness the country's rare earths deposits. * Professor Datuk Dr Ahmad Ibrahim is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an associate fellow at the Ungku Aziz Centre for Development Studies, Universiti Malaya. He can be reached at [email protected] ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
