Malaysia House Price Growth Eased to 0.9% by Q2 2026

Malaysia’s house price growth slowed to 0.9% year on year in the second quarter of 2026, according to preliminary data from the National Property Information Centre (NAPIC). The national index also fell 0.5% compared with the previous quarter.

Prices were therefore higher than a year earlier but lower than in Q1 2026. For buyers and sellers, the distinction matters: annual growth can slow while quarterly prices fall, and movements in a particular state or property type can differ from the national trend.

NAPIC, part of the Valuation and Property Services Department (JPPH), publishes the Malaysian House Price Index (MHPI). Its 2025 preliminary report recorded an annual index of 233.1 points, growth of 2.6% and a reported average house price of RM502,922. The later Q1–Q2 2026 report provides the newer quarterly readings.

Price growth and deal counts do not necessarily move together, so it helps to read both. The MHPI tracks price changes for comparable homes against a base year. It is not an average of asking prices, and it is not a valuation of your home.

NAPIC’s 2025 preliminary report recorded positive annual growth across states, ranging from 0.8% to 6.9%. Terraced houses rose 3.3%, followed by semi-detached homes at 2.8%. These are national property-type figures, so they do not describe every state or district.

Transaction volume counts how many properties changed hands. Transaction value adds up what those deals were worth. Neither is the same as the price index: total transaction value can change because of the number, type and price of properties sold.

Read the index and the deal count together.

The 2026 figures show a slower pace. Check the period each number covers, because they are not all measured against the same date.

NAPIC’s Q1–Q2 2026 report gives a revised Q1 2026 index reading of 235.9 points, up 2.0% year on year, with a reported average house price of RM508,923. Use the revised reading when comparing it with the Q2 figures in the same report.

For Q2 2026, NAPIC’s preliminary reading was 234.7 points, up 0.9% year on year and down 0.5% quarter on quarter, with a reported average house price of RM506,317. Separately, MOF’s launch speech for the first-half 2026 reports recorded 110,998 residential transactions. NAPIC’s status report counted 33,094 completed unsold residential units worth RM17.78 billion at the end of June 2026.

The 2025 row is an annual reading from the 2025 preliminary report. The 2026 rows are quarterly readings from the later Q1–Q2 2026 report. Read the stated period and comparison basis for each row; do not calculate a quarterly price change by comparing the annual row with Q1.

The national index can rise year on year while falling quarter on quarter and while completed unsold stock increases. Each measure describes a different part of the market. Read the period and scope before drawing a conclusion about the home you want.

Read price and volume together.

NAPIC’s preliminary Q2 2026 figures show annual growth of 1.1% for terraced and detached houses and 0.9% for high-rise units, while semi-detached prices were unchanged year on year. On a quarterly basis, high-rise prices rose 0.5%, while terraced, semi-detached and detached prices fell. A national all-house reading does not describe every property type.

NAPIC’s first-half 2026 status report counted 33,094 completed unsold residential units, up 23.0% from 26,911 a year earlier. Their reported value was RM17.78 billion. Completed unsold units are separate from unsold units still under construction, so keep those categories apart.

More unsold stock may give buyers more room to negotiate on some completed projects. Units that stay unsold for years may have reasons, such as location, layout or pricing, so check the specific project before you treat a discount as value.

If you are a first-time buyer. Start with the asking price, the bank’s valuation and your own budget. For example, a buyer with a RM650 car instalment and a PTPTN repayment needs the bank to assess those commitments alongside income. The Debt Service Ratio (DSR) measures the share of income going to debt repayments. Applying the national index percentage to a particular home does not establish its value or your borrowing capacity.

If you are buying outside the Klang Valley. Use your own state’s and property type’s figures. NAPIC’s 2025 annual growth range of 0.8% to 6.9% shows how a national headline can hide differences.

If you are selling. Compare your asking price with recent transacted prices for similar homes in your building or street, not with the national index. Completed unsold homes nearby also compete for the same buyers.

If you already own a home. The national index is not a valuation of your property. A bank valuer, who looks at your home’s size, condition, location and recent nearby sales, gives a better picture.

Why is the 2.6% figure different from the 2.0% figure? The 2.6% describes annual growth in NAPIC’s 2025 preliminary report. The 2.0% is the revised Q1 2026 index change against Q1 2025 in its later report. They cover different periods.

Are Malaysian house prices falling? The preliminary Q2 2026 national index was up 0.9% year on year but down 0.5% from Q1. Both statements can be true. State, district and property-type movements can differ from the national figure.

What does the "p" in Q2 2026p mean? It means preliminary. NAPIC may revise the figure in a later report.

Does the national figure apply to my area? No. It is a national reading. Ask your agent or bank valuer for recent transacted prices in your own district.

Start with your own state or district’s price trend, not the national headline. Ask your agent or bank valuer for recent transacted prices of similar homes in the same building. Then check how many completed homes nearby remain unsold, and ask your bank how it will value the property you want. Write down the asking price, the bank’s valuation and the cash you need upfront before you make an offer. If the valuation comes in below the price you agreed, you may need to pay the difference in cash, renegotiate or look at other financing, so raise it with your lawyer and the bank early.

NAPIC’s 2025 preliminary report recorded an annual index of 233.1 points and 2.6% annual growth.

The same report gave a national average house price of RM502,922.

The later Q1–Q2 2026 report revised Q1 growth to 2.0% year on year, with an index reading of 235.9.

The preliminary Q2 2026 reading was 234.7 points, up 0.9% year on year and down 0.5% quarter on quarter.

NAPIC recorded 33,094 completed unsold residential units at the end of June 2026.

Before you make an offer, compare recent transacted prices in your target area, not the national index.