Malaysia’s Property Market Rebounds with Demand for Green and Smart Homes in 2025

Date: 2025-07-12
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KUALA LUMPUR, June 2025 — Malaysia’s property sector is showing strong signs of recovery, with transaction volumes up 12% year-on-year as both investors and homeowners look for sustainable, tech-enabled living spaces.

Industry analysts from NAPIC and REHDA highlight that demand is shifting towards green-certified homes, smart condos, and well-connected suburban townships — reflecting post-pandemic lifestyle changes and sustainability goals.


🏠 Green & Smart Homes Lead the Way

  • Developers like Sime Darby Property, EcoWorld, and SP Setia are prioritizing green building certifications and smart infrastructure in new launches.

  • Buyers, especially millennials and young families, are willing to pay premiums for energy-efficient designs, smart security, and home automation systems.

  • The government’s Green Building Tax Incentives for certified developments continue through 2025.


🏙️ Suburban & Mixed-Use Growth

  • Suburban areas around Greater KL, Penang, and Johor Bahru are seeing an uptick in mixed-use projects that blend residential, retail, and co-working spaces.

  • Developers are rethinking urban density with more green spaces, EV charging stations, and community amenities.

  • The rise of remote and hybrid work has driven demand for larger living spaces outside the city core.


📈 Investment and REITs Outlook

  • Malaysia’s Real Estate Investment Trusts (REITs) sector remains stable, with a focus on industrial logistics hubs, green warehouses, and data centers.

  • Cross-border interest from Singaporean and Japanese investors is growing, especially in the industrial and commercial segments.


🗣️ Industry Insight

REHDA President Datuk NK Tong said:

“Affordability, sustainability, and digital living are shaping the market. The challenge is balancing cost pressures with quality and innovation.”


🔍 What’s Next?

✅ More smart home integrations in mid-market developments
✅ ESG-linked financing to support sustainable housing
✅ Policy reforms to simplify affordable housing supply


📬 For in-depth property analysis and emerging market opportunities, subscribe to Business Point Magazine’s “Property & Urban Living Weekly” at businesspointmag.com/subscribe

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