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Cost of Living & Housing Trends in Malaysia

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Over the past five years, Malaysia's housing market has seen moderate price increases, with fluctuations due to economic conditions:

  1. 2020: House prices grew 1.21% despite the pandemic.

  2. 2021: Prices increased 1.89%, with demand recovering.

  3. 2022: Growth reached 3.9%, driven by urban expansion.

  4. 2023: Prices rose 3.85%, supported by government incentives.

  5. 2024: House prices increased 1.4%, but inflation-adjusted values declined slightly.

Forecast for the Next 3 Years

Experts predict steady growth in Malaysia’s housing market:

  1. 2025-2027: House prices are expected to rise between 1.5% and 3% annually, depending on economic stability.

  2. Rental Market: Demand for rental properties is projected to increase, especially in urban areas.

  3. Inflation Impact: Inflation remains between 1.5% and 2.5%, affecting affordability.

  4. Construction Growth: Residential construction is expected to expand, improving housing availability.

Here are the latest trends for luxury condominiums and landed properties in Malaysia:

Luxury Condominiums

  1. Increasing Demand for High-End Living – More buyers are looking for luxury condos with top-tier amenities, especially in Kuala Lumpur and Selangor.

  2. Foreign Investment Growth – Overseas investors are showing interest in high-rise luxury residences, particularly for retirement, education, and medical tourism.

  3. Affordability Challenges – Luxury condos are becoming less affordable for locals, leading to an increase in overhang units (unsold properties) in the market.

  4. Rise of Serviced Residences – Developers are focusing on smaller luxury units with premium facilities to attract buyers who want a high-end lifestyle at a lower cost.

Landed Properties

  1. Strong Demand for Spacious Homes – Buyers are prioritizing landed houses due to lifestyle changes post-pandemic, favoring larger living spaces.

  2. Steady Price Growth – Landed properties in Selangor have appreciated by 4.5% in the last year, showing strong demand and stable growth.

  3. Sustainable & Smart Homes – New developments are integrating energy-efficient systems, green spaces, and smart home technologies to attract environmentally conscious buyers.

  4. Long-Term Investment Appeal – Landed properties continue to be highly valued, especially in growth areas with planned infrastructure upgrades.

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