Price index of houses in Malaysia 2014-2023
The house price index in Malaysia reached 216.5 in 2023, an increase of more than twofold compared to the base index of 100 in 2010. The price index, which measures the average change in prices over a period of time, indicated that the value of housing in the country continued to increase every year since 2014.
Recovery in the housing market
Malaysia’s real estate industry was significantly hit by the COVID-19 pandemic but showed signs of recovery in 2022 when the restrictions were finally lifted. Subsequently, the housing market also signaled a positive recovery, with the transaction value of the residential sector growing by approximately 22 percent in the same year. Going into 2024, despite uncertainties in the global economy, the housing market in Malaysia is likely to experience more growth.
Demand for more affordable housing
Although the real estate market is recovering and the inflation rate in the country has slowed down, the average price of houses reached nearly 450,000 Malaysian ringgit in 2022, an increase of around 12,000 Malaysian ringgit compared to the previous year. According to a survey conducted in the capital city, Kuala Lumpur, the majority of potential home buyers had a housing budget of less than 250,000 Malaysian ringgit.
As of 2024, the Malaysian government already has several low-cost housing schemes catered for the B40 lower-income and M40 middle-income groups. Nevertheless, with the rising residential prices and current cost of living, there will be more demand for affordable housing options among home buyers.
