As the demand for data centres and industrial properties surges, the property sector in Malaysia is poised for significant growth. The country’s strategic position and ongoing technological advancements have led to increased interest in data centre investments, which are seen as critical to supporting the digital economy. This trend has been echoed by property developers who are actively enhancing their landbank values to capitalize on the burgeoning sector.
According to MIDF Research, the future outlook for industrial properties remains positive, driven largely by the rapid pace of digital transformation across different industries.
The current Overnight Policy Rate (OPR), which stands at 3 percent, has further stimulated buying interest within the property sector. Favorable borrowing conditions are now enabling potential buyers to secure financing at stable rates, encouraging both developers and investors to engage more actively in the market.
This climate of economic stability is likely to bolster property investments, particularly in the data centre and industrial segments, as the demand for technologically advanced infrastructure continues to grow. In addition, the government’s focus on infrastructure improvements is expected to attract further investments in the property sector.
Despite some fluctuations in property loan applications, the general resilience of the market remains strong. A notable 5.1 percent month-on-month decrease in loan applications in January 2025 can be attributed to seasonal factors, including school holidays and the Chinese New Year celebrations.
However, expectations are set for a rebound in loan applications come March 2025, reflecting sustained interest in property investments.
In Johor, a particularly positive sentiment has emerged, correlating with a decline in residential overhang levels. This improvement signals a revitalization in the property landscape, further evidencing the favorable market conditions.
With data centres and logistics expected to drive the next wave of real estate growth, Malaysia’s property sector is well-positioned to emerge as a leading player in the regional market. The anticipated boom in data centre development in 2025 underscores the ongoing demand for industrial assets, solidifying the sector’s trajectory toward significant expansion.