Rahim & Co: Steady growth amid cautious sentiment for Malaysian property sector in 2025
“Looking forward to 2025, we anticipate the market will continue to grow, driven by residential development, emerging sectors such as data centres and renewable energy, as well as key infrastructure projects that will rekindle past interests and open up new investment opportunities,” said Rahim & Co executive chairman Tan Sri Abdul Rahim Abdul Rahman.
KUALA LUMPUR (Jan 16): Despite a strong 2024 for the Malaysian property market, sentiments remained mixed with concerns about living costs, purchasing power and global economic uncertainties, according to Rahim & Co International Property Consultants Sdn Bhd at the launch of Rahim & Co Research Sdn Bhd’s Property Market Review 2024/2025 on Thursday.
In his opening speech, Rahim & Co executive chairman Tan Sri Abdul Rahim Abdul Rahman noted that despite these challenges, the property sector remains resilient with growth in key areas, and a shift towards more sustainable technology-driven initiatives.
“Looking forward to 2025, we anticipate the market will continue to grow, driven by residential development, emerging sectors such as data centres and renewable energy, as well as key infrastructure projects that will rekindle past interests and open up new investment opportunities,” said Abdul Rahim.
He added that for the first nine months of 2024 (9M2024), both transaction volume and value surpassed those of the previous years with over 300,000 transactions (up 6.2% year-on-year) valued at nearly RM163 billion, up 14.4% compared to the year prior.
“Although we may not have reached pre-Covid [figures], I expect by 2026, we would witness a full recovery for the property sector,” Abdul Rahim told City & Country on the sidelines after the launch event.
In his presentation of the Property Market Review 2024/2025, Rahim & Co director of research Sulaiman Saheh noted that there was an improvement in transaction activity across all property sub-sectors.
“Transactions recorded up to 9M2024 were the highest since the market peak of 2011/2012. It was faster than 2023’s growth, where transaction volume grew 2.5% to 399,008 transactions, with cumulative value increasing by 9.9% to RM196.83 billion,” said Sulaiman.
“Residential transaction volume grew 4.9% with a 6.9% rise in total value, totalling RM78.17 billion over 192,484 deals,” he elaborated, adding that buyers are regaining interest but are still cautious, with affordability remaining as an issue.
As for the retail sector, Sulaiman noted that it is poised for gradual revitalisation, with new malls and stores thriving, particularly on weekends and public holidays.
“Successful malls flexed unique designs, experiential features and seasonal events such as bazaars and entertainment to attract foot traffic. In competitive markets like the Klang Valley, malls that adapt to changing consumer preferences have succeeded.
He added that the occupancy rate of shopping centres is expected to improve as operators embrace innovation and mall interactiveness to increase visitors’ experience for both locals and returning tourists.
For the office sector, he said: “Companies are prioritising flexibility, with offices evolving into collaborative hubs rather than traditional workspaces. Environmental, social and governance (ESG) considerations, along with amenity-rich locations and easy transport access, are key drivers of future demand.”
“Despite ongoing oversupply challenges in office and retail spaces, trends like ‘flight-to-green’ and ‘flight-to-quality’ will likely reshape demand, as tenants increasingly seek sustainable, high-quality buildings that align with their corporate values,” he added.
Meanwhile, industrial property showed positive growth in 2024, with a 6.5% increase in activity volume. Demand remains strong with growing interest in technologically advanced and well-connected industrial parks with innovative smart facilities.
“The industrial sector is expected to grow further, especially in the data centre segment, on top of the increasingly competitive logistics and warehousing segments that are still on the radar, driven by the New Industrial Master Plan (NIMP) 2030,” said Sulaiman.
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