What drove Malaysia’s property investment market resilience in Q3?

Johor continued to dominate transactions in the quarter.

Malaysia’s real estate investment market remained resilient in Q3/2025, with 45 transactions totalling RM3.55 billion, according to data from a Savills report.

“Activity was supported by strategic industrial acquisitions, hospitality repositioning, and selective development land purchases, highlighting ongoing confidence in Johor and Greater KL,” the report added.

Here’s more from Savills:

Johor has continued to dominate transactional activity. Megaspeed International acquired 52.5 acres of freehold industrial land in Bandar Cemerlang Industrial Park, Kota Tinggi, for RM263.2 million, designated for data centre development. The land acquisition is subject to approval from the relevant authorities, including the allocation of 300MW of power and 1.06 million litres of water per day.

Additionally, IGB Bhd, through Enrich Horizon, has entered a joint venture with Southkey City to acquire 19.7 acres of leasehold land in Plentong, Johor Bahru, for RM215 million to develop a mixed-use scheme comprising retail, hospitality, and other commercial components. In the hospitality segment, YTL Hotels has acquired the Thistle Hotel Johor Bahru for RM150 million from GuocoLand Ltd. Plans for refurbishment have been announced to reposition the hotel as a 5-star establishment by 2026.

In addition, the hospitality sector has seen strong activity in other regions. Mah Sing Group acquired the Corus Hotel site along Jalan Ampang for RM260 million, with plans to redevelop the asset into premium serviced apartments. CP Group divested The Eastin Hotel Kuala Lumpur for RM200 million, with rebranding anticipated under the Marriott portfolio. In Penang, Wealthpro Holdings disposed of the Tune Hotel Georgetown to ECM Libra Group for RM51.9 million.

REITs remained active, albeit selectively, focusing on both portfolio optimisation and asset diversification. Sentral REIT divested its Wisma Sentral Inai near TRX, comprising 233,000 sq ft NLA and 310 parking bays, to Turiya Berhad for RM135 million. Axis-REIT continued expanding its industrial portfolio through acquisitions in Telok Gong (RM80 million) and Bandar Sultan Suleiman (RM50 million), while Hektar REIT has acquired two leasehold land parcels totalling 41.8 acres in Melaka from Kolej Yayasan Saad, for RM40.0 million. The land will be leased back to Kolej Yayasan Saad, yielding a combined average of 8.45% over a 30-year period under a triple net lease agreement.

In the development land segment, Y&G Corp strengthened its landbank with two significant acquisitions: 148.5 acres in Kuala Selangor for RM189 million and 95 acres in Sepang for RM206 million. Avaland Berhad also expanded its footprint with two acquisitions for future high-rise mixed-use developments: a 2.2-acre site in Section 13, Petaling Jaya, for RM49 million, and a 3.2-acre land parcel on Jalan Putra, Kuala Lumpur, for RM148.8 million.

Malaysia’s real estate fundamentals remain strong, supported by consistent institutional demand, and ongoing interest in industrial, hospitality and development land assets within key growth corridors. We expect this positive momentum to continue in the coming quarters.