Which Malaysian States Have the Most Property Transactions?

I. Introduction

The Malaysian property market in 2025 has reached a fascinating and somewhat contradictory juncture. For the first time in a decade, we are witnessing a "decoupling" of volume and value. According to the latest figures from the National Property Information Centre (NAPIC), the market recorded a robust performance with over 416,000 transactions in the preceding year. More impressively, the total transaction value surged past the RM241 billion mark, a historic high that suggests while the number of deals is stabilizing, the price of the assets being moved is escalating.

However, for the property professional, the national average is a dangerous metric. If you look at Malaysia as a single market, you miss the nuance. The 2025 landscape is defined by its unevenness. Transaction activity is not a flat plane; it is a series of peaks and valleys. One state might be grappling with a 30% overhang in serviced apartments, while a neighboring state is seeing record-breaking sell-out rates for industrial warehouses.

Understanding which states lead the market and why is no longer just academic. It is the core of your survival as an agent or investor. In this guide, we will dissect the regional micro-climates of 2025, moving from the undisputed dominance of the Klang Valley to the explosive growth in the South, and the emerging infrastructure plays in East Malaysia.

II. The National Picture In 2025

As we explore the individual states, we first need to identify the macro-trends influencing the subsectors; thus, beginning with a focus on the residential subsector, it will act as a foundation for the rest of the industry in 2025: 61.3% of transaction volumes will come from this subsector. However, one of the major trends impacting transactions during that time period is concentration of activity; four states alone will represent over 50% of all residential property transactions in the country, which are known, as the Core Four, Selangor, Johor, Kuala Lumpur, and Penang when these states make a move, the rest of the country will follow suit.

This concentration of wealth and activity occurs in response to what we term as the 'Flight to Quality'; buyers have stopped speculating (on cheap land in hopes that townships would eventually occur) and instead are clustering around pre-established economic corridors, high-speed rail nodes, and specialized economic zones. The 2025 market will be primarily infrastructure-led. Example: transaction volume will follow the presence of physical items; if a new rail system (RTS Link, ECRL or Mutiara LRT Line) is built, then there will also be an increase in transaction volume associated with those properties located near the physical infrastructure improvements.

III. The Top Performer: Selangor

Selangor remains the powerhouse of the Malaysian property scene. In the 2025 cycle, Selangor recorded approximately 77,700 residential transactions, which accounts for roughly 21.6% of the national total.

The "Hub Effect" and Internal Migration

Selangor’s dominance is not accidental. It is the primary beneficiary of Malaysia’s internal migration. As the nation’s industrial and commercial heart, it attracts a constant influx of young professionals and families from other states. This creates a "perpetual floor" for demand. While other states might see volume drop during economic shifts, Selangor merely sees a shift in where people buy within the state.

The Rise of the "Outer Ring" and TODs

In 2025, we saw a massive migration of volume away from the saturated centers of Petaling Jaya and Subang Jaya toward the "Outer Ring" townships. Areas like Semenyih, Rawang, Cyberjaya, and Elmina are seeing the highest transaction counts for landed terrace homes.

• The TOD Revolution: Transit-Oriented Developments (TODs) along the MRT Putrajaya Line and the LRT 3 (Shah Alam Line) have become the primary focus for young M40 buyers. A unit with a "covered walkway to the station" is currently transacting at a 12 to 15% premium over non-transit units in the same district.

Directive for Agents in Selangor:

Stop focusing on the secondary market in oversupplied high-rise nodes. The volume is in landed-strata townships and TODs. If your listing isn't within a 10-minute drive of a rail station or a major highway interchange (like DASH or EKVE), you are fighting for a shrinking piece of the pie.

IV. The Runner Up: Johor

If Selangor is the anchor of the market, Johor is the turbocharger. Johor has firmly secured its position as the runner-up in transaction volume, capturing a 16.3% market share with nearly 67,000 transactions.

The RTS and JS-SEZ Paradigm Shift

The narrative in Johor has undergone a total transformation. Three years ago, Johor was the "overhang capital" of Malaysia. Today, it is the primary target for institutional investors and cross-border buyers.

1. The RTS Link: With construction nearing completion in 2025, the "priced-in" value of properties in JB City Centre has surged. Average transaction prices for serviced apartments in the city center grew by 20.4% in early 2025 compared to 2024 averages.

2. JS-SEZ (Johor-Singapore Special Economic Zone): Established in early 2025, this zone covers an area five times the size of Singapore. It has turned Johor into a "living lab" for the digital economy and tech manufacturing.

3. Data Center Boom: Johor is now the fastest-growing data center hub in Southeast Asia. This brings a "high-income" ripple effect for engineers and tech professionals who are entering the rental market, driving yields in Medini and Puteri Harbour.

New Residential Launches

Notably, Johor recorded the highest number of new residential launches in early 2025. Unlike the speculative boom of 2014, these launches are strategically smaller, focused on "liveability" rather than "investor-only" units.

V. The Core Four States

To understand the Malaysian market is to understand the "Core Four." These regions are not just where people live; they are where the majority of the nation's GDP is generated.

Selangor acts as the stabilizer.

It offers the most balanced portfolio of industrial, commercial, and residential assets. Its transaction volume is driven by the mass market and the "M40" demographic. It is the "safe harbor" for long-term capital preservation.

Johor is the outlier growth story.

It is the only state where international policy (Singapore-Malaysia relations) dictates property prices as much as local demand. It is currently the most active market for "New Money" and industrial expansion, with rental hikes of up to 35% reported in prime JB office and residential nodes.

Kuala Lumpur remains the premium play.

While its transaction volume is lower than Selangor (due to its smaller geographical footprint), its transaction value per deal is the highest in the nation. The KL market in 2025 is obsessed with urban renewal. Projects like the Retro Highland redevelopment are injecting thousands of new units into mature areas like Cheras, attracting a mix of generational wealth and young urbanites.

Penang is the supply-constrained jewel.

With limited land on the island, transaction volume is moving toward the Mainland (Batu Kawan and Seberang Perai). The Mutiara LRT Line, which began construction in early 2025, is the single biggest catalyst. Corridors from KOMTAR to Bayan Lepas are already seeing a 5 to 10% "announcement uplift" in asking prices.

VI. Breakdown by Property Segment

When we analyze transaction activity, we must differentiate between liquidity and inventory.

The Serviced Apartment Overhang

Despite the high transaction volume in Johor and KL, the serviced apartment segment remains a point of concern.

• Johor: Holds the highest unsold completed serviced apartment inventory (approx. 9,000 units).
• WP Kuala Lumpur: Follows with roughly 4,600 units.
• Selangor: A distant third with 2,000 units.

This mismatch highlights a critical lesson for 2025: High volume does not mean high absorption. Just because Johor has the most deals doesn't mean it has solved its high-rise problem. The deals are happening in the RM300k to RM500k terrace segment, while RM800k condos sit empty.

The "Affordable" Trap in Perak and Sabah

Perak and Sabah represent a unique case. Perak has one of the highest volumes of unsold completed residential units (over 3,300 units). The issue here isn't price: it's relevance. Many of these units are "affordable" but located too far from industrial hubs or lack the "Live-Work-Play" ecosystem that modern buyers demand.

VIII. Conclusion

As we synthesize the data from the Core Four and the emerging states, here is the roadmap for the remainder of 2025 and early 2026.

For Investors: The "Yield over Capital" Shift

In a high-price environment, capital appreciation is no longer guaranteed. Focus on Yield Management.

·         Target: Dual-key units in the RTS-affected areas of Johor Bahru or student-centric accommodation in Kampar, Perak.

·         The Play: Look for assets that can be "flexed" into short-term rentals (Airbnb) or co-living spaces to maximize cash flow.

For Developers: The "Right-Sizing" Mandate

The era of the "Mega-Project" is giving way to "Micro-Townships."

·         The Strategy: Instead of 1,000-acre masterplans, successful developers are focusing on 20-to-50-acre "infill" developments in Selangor and Penang that plug into existing infrastructure.

·         The Feature: Incorporating EV-charging infrastructure and "work-from-home" communal pods is no longer a luxury; it is a prerequisite for high take-up rates.

For Government Policy: Balancing Equity

To maintain the health of the property market, the focus must shift from "building more" to "matching better." Policies should encourage the conversion of vacant commercial spaces (specifically older office towers in KL) into residential or mixed-use "creative hubs" to tackle the overhang while revitalizing the city's heartbeat

Move toward 2026, the data suggests that the concentration of market activity will only intensify. Selangor will remain the volume leader, but Johor will likely close the gap in terms of "Investor Sentiment."

The Final Directives for Professionals:

• Follow the Rail: In Selangor and KL, volume is anchored to the MRT and LRT 3.
• Follow the Singapore Dollar: In the South, the RTS Link and JS-SEZ are the only metrics that matter for capital appreciation.
• Leverage SJKP: Don't ignore the gig economy. With over RM10 billion in SJKP guarantees approved recently, this is your path to tapping into the "un-bankable" market.

The 2025 market is rewarding those who can read between the lines of the NAPIC reports. It is a year of Strategic Selection. Focus your efforts on the Core Four, understand the infrastructure catalysts, and you will find that even in a maturing market, the opportunities for significant yield are greater than ever.