Kuala lumpur: Ongoing global geopolitical conflicts are expected to moderately affect Malaysia's property development and construction sector in 2026, according to a preliminary survey by the Real Estate and Housing Developers' Association (Rehda). Its president, Datuk Ir Ho Hon Sang, stated that 42.6 per cent of respondents anticipated a moderate impact from the tensions, while around 30 per cent expected a significant effect, though the full consequences have yet to materialize.
According to BERNAMA News Agency, the conflict in West Asia began two weeks ago. Contractors are vigilant and continue to monitor the situation, with feedback being received from the industry periodically. Rehda is working with the government to explore ways to support the industry. On supply pressures, 37 per cent of respondents expect a significant impact on construction material prices or supply in Malaysia, while 38 per cent foresee a moderate effect. Key building materials, including steel and reinforcement bars, could be among the most affected if supply disruptions occur.
Ho noted that developers had already received notice of a 20 per cent rise in concrete prices, attributed to regulatory enforcement factors. The survey also indicated that moderate or minor project delays may occur if geopolitical tensions persist, although the situation remains uncertain. Broader economic caution follows the government's announcement that all government agencies and government-linked companies would not organize Aidilfitri open houses to conserve finances amid uncertainty.
The preliminary survey on 'Developers' Views on Potential Impact of Global Geopolitical Conflicts' was conducted from March 6 to 9, 2026, involving 55 Rehda members. If tensions ease and global conditions stabilize, the property market outlook for 2026 remains cautiously optimistic. Rehda conducted its 2026 market outlook prior to the US and Israel launching wide-ranging strikes on Iran on Feb 28, 2026. Forty-seven per cent of respondents, out of 166 Rehda members who participated in the Property Industry Survey (PIS), planned to launch projects in the first half of 2026, comprising 5,015 landed units and 12,669 strata units.
Most respondents expect sales performance to rise from below 25 per cent in the first three months to between 25 per cent and 50 per cent by six months. By price range, respondents in most states planned launches within RM300,001-RM500,000, except in Kuala Lumpur and Selangor (RM500,001-RM700,000) and Johor (RM1,000,001-RM2.5 million).
Respondents maintained a mostly neutral outlook for 2026, with slightly higher optimism in the first half of 2026 compared to the second half of 2025, and remained higher for the second half of 2026. This optimism is supported by the Valuation and Property Services Department (Napic), which reported that Malaysia's property transactions exceeded RM240 billion in 2025, up from around RM232 billion in 2024. A stronger ringgit against the US dollar, a stable overnight policy rate (OPR) at 2.75 per cent, and strong economic growth of 6.3 per cent in the fourth quarter of 2025 also contribute to this outlook.
While these signs of optimism are positive, it should be noted that the surveys were conducted prior to the current situation in the Middle East. The property industry must be prepared for any possible outcomes, and Ho emphasized the importance of all players continuing to support one another.