Malaysia’s secondary residential property market recorded a stronger start to 2026, with the national average subsale home price rising 4.8% year-on-year (y-o-y) to RM545,059 in the first quarter (Q1) of 2026, according to the latest report by IQI.
The IQI Q1 2026 Residential Subsale Market Report, which analysed more than 230,000 transactions recorded since 2018, showed that Kuala Lumpur led price growth among major markets, with the average subsale home price in the capital city surpassing the RM1 million mark.
IQI Co-Founder and Group CEO Kashif Ansari said the increase reflected improving buyer confidence, particularly for properties located in established areas with strong infrastructure and connectivity.
“Kuala Lumpur once again leads the way with strong price gains. Buyers continue to see value in established neighbourhoods with good infrastructure and connectivity,” he said.
According to the report, subsale prices have been rising at a faster pace compared with the broader residential market. IQI noted that the average resale home price increased nearly three times faster than the National Property Information Centre’s (NAPIC) all-property House Price Index, which recorded a 1.7% increase over the same period.
IQI said Malaysia’s subsale market has generally followed an upward trajectory since Q1 2024, despite some quarterly fluctuations.
Prices remained mostly within the RM500,000 to RM560,000 range over the past nine quarters, with a temporary year-on-year decline of up to 5.5% recorded in Q3 2025 before recovering towards the end of the year.
The recovery continued into Q1 2026 as buyers returned to the market, although prices remained below the exceptional levels recorded in Q4 2025.
Despite price increases, affordable housing continued to dominate subsale transactions, with nearly one-quarter of purchases involving homes priced at RM250,000 and below.
IQI said about seven in 10 subsale transactions involved properties priced below RM500,000, highlighting continued demand from first-time buyers and middle-market purchasers.
Homes priced above RM1 million accounted for 8% of transactions, while properties between RM750,000 and RM1 million made up 6% of purchases.
“Affordable homes remain the engine of transaction volume, while urban centres like Kuala Lumpur are seeing strong price appreciation and sustained demand,” Kashif said.
Among major markets, Kuala Lumpur registered the strongest performance, with average subsale prices increasing 15% y-o-y to RM1,024,793.
Melaka also recorded strong growth, with average subsale prices rising 10% to RM358,964, supported by continued buyer interest.
Selangor, Malaysia’s largest subsale market by transaction volume, remained stable, with average prices largely unchanged at RM559,935.
Meanwhile, Pulau Pinang and Negeri Sembilan recorded slight declines of 2% and 5% respectively, reflecting a shift towards more affordable price segments.
Negeri Sembilan emerged as the most affordable among the five major states tracked, with an average subsale price of RM340,207, making it an increasingly attractive option for buyers priced out of the Klang Valley.
IQI expects Malaysia’s subsale property market to maintain steady momentum throughout 2026, supported by economic growth, infrastructure development and continued buyer interest.
“With more than 230,000 transactions of all kinds recorded since 2018, the data shows a market that has remained consistently active,” Kashif said.
He added that demand is expected to remain resilient, driven by affordable housing needs, urban development and buyers seeking established communities with accessibility and amenities.
