Kota Kinanbalu (May 14) - Jabatan Penilaian dan Perkhidmatan Harta (JPPH) has reported that the average residential property price in Malaysia has now climbed beyond the RM500,000 mark, reflecting continued growth in the country’s housing market despite ongoing affordability concerns.
According to JPPH, the national average house price reached approximately RM507,533 during the first quarter of 2026, while the Malaysian House Price Index rose by 1.7 per cent year-on-year to 235.5 points.
The department stated that most states recorded moderate price growth ranging between 0.3 per cent and 7.2 per cent, although some states such as Sabah and Negeri Sembilan experienced slight declines during the period.
Among the states with the highest average residential prices were:
- Kuala Lumpur — approximately RM804,642
- Selangor — approximately RM553,196
- Sarawak — approximately RM540,884
- Sabah — approximately RM533,614
- Penang — approximately RM504,845
Meanwhile, states such as Johor remained above the RM400,000 level, while several others including Kedah, Negeri Sembilan, and Terengganu recorded average prices slightly above RM300,000.
The report also highlighted concerns involving unsold completed residential units, with overhang properties increasing to more than 32,000 units nationwide, carrying a combined value exceeding RM16 billion.
JPPH noted that serviced apartments continued to contribute significantly to the overhang segment, particularly units priced between RM500,000 and RM1 million.
The department said the property market remains influenced by broader economic conditions, including geopolitical uncertainties, construction costs, financing conditions, and overall consumer purchasing power.
For Sabahans, the figures place Sabah among the states with the highest average residential property prices in Malaysia, even surpassing Penang in average housing value.
With Sabah’s average house price standing at around RM533,614, concerns over affordability are expected to continue growing, particularly among young working adults and first-time homebuyers.
In urban areas such as Kota Kinabalu and surrounding districts, rising land values, tourism-driven development, and construction costs have contributed to steadily increasing property prices over recent years.
Many Sabahans already face higher transportation and logistics costs compared to Peninsular Malaysia, and expensive housing may place additional strain on household finances. Younger families may increasingly rely on longer housing loans or postpone property ownership altogether.
At the same time, higher property prices could benefit existing homeowners and investors through stronger asset appreciation. Sabah’s construction and property sectors may also continue seeing activity if demand for residential developments remains stable.
However, the growing gap between income levels and housing prices is likely to intensify calls for more affordable housing initiatives and improved urban planning within the state.
Overall, the latest JPPH figures underline the increasing challenge of ensuring housing remains accessible to ordinary Sabahans while the property market continues to expand.