LAST UPDATED: Q3 2025 / Q1 2026
Valuation Monitor
Is Malaysian Property Cheap or Expensive? A Multi-Framework Analysis
Median Multiple
4.3x
Seriously Unaffordable
DOSM 2022
Gross Rental Yield
5.19%
↑ vs Q1 2025
Global Property Guide Q1 2026
Yield Spread vs OPR
+2.44%
relative value
Calculated
Real Price Growth
−1.39%
Q3 2025
JPPH / DOSM
Yield Spread History
Rental Yield minus OPR — Positive = relative value
Spread > 2% historically indicates relative value for yield investors. Current +2.44% is positive but compressed vs 2020–2021 peak.
Median Multiple by State (2022)
Price-to-Rent Ratio by City
P/R > 25 = renting preferred; P/R < 15 = buying preferred. KL at 21.7 is in the neutral zone.
MHPI Nominal vs Real
MHPI at 229.1 (Q3 2025, +0.1% YoY). Real house prices flat/declining since 2022 — no bubble signal.
KL vs Asia Pacific Price-to-Rent
Lower = more attractive for buyers
KL remains significantly undervalued vs regional peers on a price-to-rent basis.
Valuation Framework Summary
Framework 1: Yield Spread
Spread +2.44% → Relative Value
Rental yield exceeds borrowing cost proxy. Positive carry for leveraged investors.
Framework 2: Median Multiple
National 4.3x → Structural Pressure
Above Demographia "seriously unaffordable" threshold. Income growth needed to close gap.
Framework 3: Regional P/R
KL 21.7 vs HK 50, SG 40 → Undervalued Regionally
Malaysia offers significantly better value per rent-dollar vs APAC peers.
New 8% stamp duty from Jan 2026 reduces foreign demand at the margin.