The year 2025 for the Malaysian property market will be marked by the advanced progress of new mega infrastructure projects and the transition to new technologies. These will serve as the main drivers for the market, said CBRE | WTW group managing director Tan Ka Leong.
“As we look to 2025, it is clear that the Malaysian property market is entering a transformative phase. From infrastructure projects such as the East Coast Rail Link (ECRL), the Johor-Singapore Rapid Transit System Link (RTS Link) and the Pan Borneo Highway to the adoption of advanced technologies and sustainable urban redevelopment, the nation is poised to deliver promising opportunities for investors and stakeholders,” said Ka Leong at the launch of CBRE | WTW’s 2025 Malaysia Real Estate Market Outlook report titled “Sustaining Game Changers” on Jan 9.
“To maximise and sustain the benefits from these game changers, development planning and building regulations should be reviewed and updated to fully leverage the potential of the property market,” he added.
“The Klang Valley real estate market is set for growth, propelled by advancements in the industrial, retail and hospitality segments,” said CBRE | WTW associate director research and consultancy Mary Kurien.
For instance, she highlighted that industrial parks are evolving towards high-tech industries, integrating artificial intelligence (AI) and green certifications, which align with the New Industrial Master Plan (NIMP) 2030.
“Demand for AI-driven solutions, cloud services and data centre developments continues to fuel this momentum. Similarly, the retail and hotel sectors stand to benefit from a vibrant tourism industry, further fortifying the Klang Valley’s market resilience.”
She added that retailers are showing renewed optimism amid activities in retail mall acquisitions and the entry of new brands. “However, older malls, which have been registering a decline in occupancy in the past few years, continue to struggle and search for a niche in the changing retail landscape.”
In this context, Kurien noted that key players have experimented with various strategies to make malls more attractive, including offering more diverse dining options, art and culture platforms, entertainment and sports facilities and open-concept zones.
For the hotel sector, Malaysia is slated to attract more than 31 million international tourists in 2025, ahead of “Visit Malaysia Year 2026”. “This anticipated influx presents an opportunity for increased demand across all hospitality market segments.”
Kurien noted that by the end of 2025, over 2,000 new 5-star hotel rooms are expected to enter the market, representing 61% of the new hotel rooms in the Klang Valley.
Meanwhile, for residential, she anticipated a trend towards the incorporation of a workspace area such as co-working lounges. “We are anticipating a trend towards balancing urban living and work styles. Additionally, there will also be a focus on green building features such as sustainable building materials, solar panels and electric vehicle (EV) charging infrastructure.”
Source: The edge Malaysia
