PETALING JAYA, Sept 23 — Malaysia’s property market remains soft, with growth appearing moderate despite a marginal improvement in sales performance during the first half of 2026, according to the Real Estate and Housing Developers’ Association (Rehda) Malaysia.

Presenting the findings of the Property Industry Survey (PIS) at Wisma Rehda today, Rehda president Datuk Zaini Yusoff said that while the industry is seeing some activity, the market continues to grapple with unsold inventory and financing challenges.

The survey found that 59 per cent of respondents had unsold stock as of June 30.

Data from the survey showed that the number of units launched remained broadly unchanged, with 15,834 units entering the market in the first half (1H) of 2026 compared with 15,841 units in the second half (2H) of 2025 — a difference of just seven units.

However, sales performance saw a modest uptick, with 5,260 units sold, representing a 3.2 per cent increase from the 5,098 units recorded in the previous six-month period.

Consequently, the overall take-up rate edged up to 33.2 per cent from 32.2 per cent in 2H 2025.

"Performance remained mixed across property types, indicating that the market continues to remain soft," Zaini said during the presentation.

According to the report, apartments and condominiums were the strongest-performing property type, recording a take-up rate of 58 per cent, followed by semi-detached and cluster homes at 30 per cent.

In terms of volume, apartments and condominiums accounted for the highest number of units sold at 3,032, followed by serviced residences at 1,114 and two-to-three-storey terrace houses at 610.

The survey found that the majority of launches, at 53 per cent, were priced between RM300,001 and RM500,000, primarily in Perak, Pahang and Negeri Sembilan.

Only one per cent of units were priced at RM2.5 million and above.

Meanwhile, the market remained heavily skewed towards domestic demand, with 98 per cent of buyers being Malaysians.

Foreigners accounted for just two per cent of sales, indicating that international demand remained limited.

Younger buyers dominated the market, with 70 per cent of purchasers aged between 29 and 44.

The hurdle of unsold units

Despite the marginal increase in sales, the Rehda survey highlighted persistent concerns over unsold completed residential units, with 59 per cent of respondents reporting such stock as of June 30.

The top three reasons cited for units remaining unsold were end-financing loan rejections at 30 per cent, high pricing at 21 per cent and unreleased Bumiputera units at 16 per cent.

Notably, 33 per cent of these unsold completed units were priced at RM1 million and above.

Zaini said the issue of end-financing remained critical.

"Among the main factors contributing to housing loan rejection were purchasers’ income eligibility, lower margins of financing offered by financial institutions, and applicants’ adverse credit histories, suggesting the continuing importance of access to appropriate end-financing in supporting home ownership," he said.

The survey involved 181 Rehda members and focused on property market performance across Peninsular Malaysia.

Conducted by the Rehda Institute between July and August 2026, the survey aimed to evaluate market performance in the first half of 2026 while providing an outlook for the second half of 2026 and the first half of 2027.