Population growth is projected to drive a 15% rise in Malaysian housing transactions over five years, with 582,000 new households forming nationwide.

KUALA LUMPUR: Malaysia’s residential property transactions are forecast to increase by 15% over the next five years.

IQI co-founder and group chief executive officer Kashif Ansari said this growth will be driven primarily by population expansion.

He said population growth alone could lead to a 15% increase in the number of homes purchased.

“That leaves out demand from upgrade buyers, investors and foreign buyers,” he added in a statement.

The national population is expected to grow by 2.2 million people to 36.5 million by 2030.

Based on an average household size of 3.8 persons, this translates to over 116,000 new households annually.

This consistent household formation will continue to add both buyers and renters into the market.

Ansari said Selangor is expected to remain the largest contributor to housing demand.

Its population is projected to increase by 382,000 by 2030, necessitating more transit-oriented and affordable developments.

Sabah is forecast to record the second-largest increase with an additional 283,000 residents.

Johor follows with 279,000, benefiting from migration linked to the Johor-Singapore Special Economic Zone.

Kelantan and Terengganu are expected to register population growth of more than 12%.

This highlights rising housing needs in markets that have historically faced supply gaps.

The proportion of Malaysians in urban areas is projected to rise to 79.3% by 2030.

This will drive a sustained need for housing, infrastructure and supporting services.