Malaysia’s residential prices are expected to rise modestly in 2026, with national forecasts clustering between about 1–5% growth, and slightly stronger gains in selected hotspots like MRT/RTS-linked corridors and prime KL city locations. For international buyers, this points to a market that is stable rather than speculative, where returns will depend more on choosing the right micro‑location and asset than riding a boom.
Price Growth Forecasts for 2026
- The Real Estate and Housing Developers’ Association (REHDA) president expects Malaysian residential prices to rise only about 1–2% in 2026, reflecting cautious developer pricing despite 2–3% construction cost inflation.
- Other analysts cited in local financial press and research reports see house prices rising around 2.5–5%, with the higher end of that range driven by key corridors linked to MRT/LRT and major infrastructure.
For international buyers, this means 2026 is framed as a moderate appreciation year, not a rapid upswing; timing matters less than picking assets tied to structural demand (transit, jobs, tourism).
What This Means for KL City Centre
- Research notes that Malaysia’s real estate market is shifting “from resilience to selective outperformance”, with performance increasingly driven by asset quality, sustainability, and long‑term relevance.
- In Kuala Lumpur, overhang in high‑end city‑centre stock (including parts of KLCC/Mont’Kiara) has eased over the last two years, with more units above RM1 million gradually absorbed by foreign buyers, especially in well‑located and well‑managed projects.
KL city centre therefore behaves like a stock‑picker’s market: weaker projects may stay flat, while best‑in‑class assets near MRT/TRX/Bukit Bintang can reasonably outpace the 1–2% national baseline.
Where Analysts Expect Stronger Growth
- Juwai IQI’s 2026 outlook projects national price growth in the 2–4% range, but explicitly flags Johor (RTS‑linked areas) and selected Klang Valley MRT/LRT zones as likely to grow faster than the national average.
- Local consultants similarly highlight major urban centres (Kuala Lumpur, Johor, Penang, parts of Kota Kinabalu) as where investor activity is concentrated, versus more purely owner‑occupier suburban markets.
For a KLCC/Bukit Bintang/TRX investor, the educational narrative is: infrastructure and connectivity are now the main capital‑growth catalysts, more than simply “city centre” branding.
Investor Takeaways for International Buyers
- 2026 looks like a “best since 2019” type year if there are no major global shocks: gently rising prices, fewer new launches, and stable demand favour long‑term investors who buy earlier rather than later.
- With Malaysia also tightening terms for foreign residential buyers (e.g. 8% stamp duty on foreign residential purchases from 2026 in many states) and focusing on higher value segments, the environment increasingly rewards patients investors targeting quality, not quick flips.
No matter where are you from, be it Singapore, China, Taiwan, Japan, India, Indonesia, Africa, Middle East or Western countries, Malaysia’s properties are very much suitable for those who really love Malaysia. You own it for retirement, education, medical, business venture or investment. My simple advise to you to own properties in Malaysia for long haul even though the price is very affordable comparing to your home country.