Malaysia real estate deals hit over RM16b in 2025

A total of 37 major deals worth nearly RM6b were recorded in Q4 alone.

Malaysia recorded RM5.57 billion in major real estate transactions in Q4 2025, bringing total deal value for the year to RM16.56 billion, according to Savills.

Savills noted that investment activity during the quarter was primarily driven by the industrial and hospitality sectors, with participation from both corporate and institutional investors. The firm highlighted a broadening appetite for high-quality assets, particularly within Kuala Lumpur’s Tun Razak Exchange (TRX), which continued to attract strong investor interest as a prime mixed-use precinct.

Johor remained a key contributor to transaction volumes, supported by its strategic positioning within the Johor-Singapore Special Economic Zone (JSSEZ), Savills said. A notable deal included Eco Business Park 8 Sdn Bhd’s RM814.8 million acquisition of 941.8 acres in Flagship F, Kulai, earmarked for an integrated industrial park under the wider Iskandar Malaysia framework.

In the REIT space, Savills reported that Axis REIT completed an RM800 million acquisition of a freehold industrial asset in Prai Industrial Estate, reflecting an average yield of 6.24% backed by a fixed eight-year lease.

Meanwhile, Malayan United Industries (MUI) acquired 730.9 acres of freehold land in Ijok, Kuala Selangor for RM605 million, as part of a landbanking strategy driven by the site’s connectivity to major highways, including the West Coast Expressway and LATAR Highway.

Savills also highlighted continued momentum in the hospitality sector, which saw five transactions in the quarter. Oriental Holdings Berhad accounted for three acquisitions across Penang and Langkawi, while in Kuala Lumpur, the 519-room Impiana KLCC Hotel was acquired by the Valiram family for RM315 million.

In a separate transaction, Valiram Group also acquired Lendlease’s interest in The Exchange TRX, comprising a 40% stake in its retail mall and 60% of the adjoining office tower.

Looking ahead, Savills said TRX City is set to further strengthen its position with a planned RM2.8 billion campus by Monash University Malaysia, scheduled for completion in 2032.

Overall, Savills emphasised that Malaysia’s real estate fundamentals remain resilient, supported by demand in alternative sectors, improving asset quality and a robust infrastructure pipeline underpinning medium-term investment prospects.