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The Kedah property market in 2026 is no longer moving as a single market, it is diverging, with residential demand holding firm while other sectors face increasing pressure.

While residential demand continues to show resilience, commercial and industrial segments are experiencing short-term adjustments. At the same time, major infrastructure developments and large-scale land transactions suggest that longer-term opportunities remain intact.

For investors and developers, the key is no longer whether the market is growing, but where demand is moving and why.

Aerial cityscape of Alor Setar, featuring the iconic Alor Setar Tower rising prominently at the center of a well-planned urban landscape. In the foreground, the Zahir Mosque with its distinctive black domes and white structure sits beside open green spaces and road networks with light traffic. Surrounding the area are mid-rise residential and commercial buildings, with a mix of traditional rooftops and modern developments extending toward the horizon.
Source: hotels.com


Is the Kedah Property Market Growing in 2026?



In simple terms, the Kedah property market is not declining. It is becoming more selective.



Residential demand remains stable, supported by affordability and owner-occupier demand. However, commercial and industrial segments are undergoing a short-term slowdown, reflecting broader economic caution and shifting investment priorities.



This mirrors wider trends seen across the property market Malaysia, where investors are becoming more targeted rather than broadly optimistic.


Kedah Property Market: CAGR Performance by Sector

Line chart illustrating the compounded annual growth rate (CAGR) performance across residential, commercial, and industrial property sectors from 2021 to 2025. The chart shows significant volatility, with commercial properties experiencing a sharp spike in 2021 followed by a steep decline in 2022, then partial recovery and fluctuation thereafter. Residential growth appears more stable with moderate increases and slight dips, while industrial properties peak in 2022 before trending downward into negative growth by 2025.
Source: NAPIC & Raine&Horne Penang Research


Data source:

  • Residential: +11.2% (2025)

  • Commercial: -27.5%

  • Industrial: -35.0%



Kedah Property Market Residential Sector Remains the Core Driver



The residential sector continues to anchor the Kedah property market.



Transaction activity increased to 14,216 units in 2025, with total transaction value reaching approximately RM4.05 billion .



This growth is largely driven by:

  • affordability compared to major urban centres

  • steady demand from owner-occupiers

  • gradual improvement in financing accessibility



Unlike more speculative markets, Kedah’s residential segment reflects fundamental demand rather than short-term investor-driven growth.



Increasingly, sustainability considerations are also shaping buyer preferences, particularly as ESG principles become more embedded in Malaysia’s property sector.


Residential Transaction Volume & Value

Chart showing residential transaction volume and value trends alongside commercial and industrial segments from 2021 to 2025. Residential properties consistently record the highest transaction volumes, with a steady upward trend over the years, while residential values also increase overall despite minor fluctuations. Commercial and industrial segments show lower volumes and more variability in both transactions and value, with noticeable peaks and declines across different years.
Source: NAPIC & Raine&Horne Penang Research



Kedah Property Market Commercial and Industrial Sectors Face Pressure



While residential remains resilient, both commercial and industrial segments have seen a contraction in 2025.

  • Commercial CAGR: -27.5%

  • Industrial CAGR: -35.0%



Transaction values for both sectors have also declined, indicating more cautious investment activity.



This does not necessarily signal structural weakness. Instead, it reflects:

  • capital repositioning

  • delayed investment decisions

  • transitional market conditions



In many cases, these slowdowns occur before the next phase of growth, particularly in markets linked to infrastructure development.



Kedah Property Market Overhang Signals Supply Pressure



One of the clearest indicators of market imbalance is the increase in unsold units.



Residential overhang rose sharply by 176% (1,234 units) in 2025, while:

  • Industrial overhang increased by 50%

  • Commercial overhang increased by 13.5%



This suggests that supply is outpacing demand in certain segments, particularly in newly launched or less strategically located developments.


This line chart showing property overhang trends across residential, commercial, and industrial segments from 2021 to 2025. Residential overhang units fluctuate significantly, rising sharply in 2022, dropping in 2023, and then increasing again to a peak in 2025. Commercial overhang remains relatively stable with minor variations over the years, while industrial overhang stays consistently low with slight increases.
Source: NAPIC & Raine&Horne Penang Research


Kedah Property Market Investment Activity Remains Strong



Despite short-term sectoral declines, capital continues to flow into Kedah through significant transactions.



Notable deals include:

  • RM339 million development land in Kulim

  • RM165 million healthcare facility in Alor Setar

  • RM128 million development land in Kulim Hi-Tech area



These transactions indicate continued confidence in Kedah’s long-term development potential, particularly in areas linked to industrial and economic growth corridors.

Map of the state of Kedah, Malaysia, showing clearly defined district boundaries labeled in red text. Key districts such as Kubang Pasu, Padang Terap, Pokok Sena, Pendang, Sik, Baling, Kulim, and Bandar Baharu are highlighted in different colors to distinguish regions. Coastal areas like Kuala Kedah and Alor Setar are marked on the western side, while Langkawi island is shown separately at the bottom left.


Infrastructure and Industrial Growth: The Long-Term Story

While industrial property performance has declined in the short term, infrastructure developments suggest a different long-term trajectory.

Major projects include:

  • RM11.1 billion Pulau Bunting energy hub

  • Sanglang Port (RM800M–RM1B) Malaysia–Thailand landbridge

  • RM1.1 billion Bukit Kayu Hitam industrial park



These developments are expected to:

  • strengthen cross-border trade

  • expand logistics networks

  • increase industrial demand



According to Malaysia’s National Investment Aspirations framework, infrastructure-led growth remains a key driver of regional economic expansion.

Similar to how major infrastructure projects such as the East Coast Rail Link (ECRL) are reshaping industrial property demand across other regions, Kedah’s logistics and cross-border connectivity could play a similar role over time.


Aerial photograph of a large-scale industrial facility featuring multiple modern factory buildings with structured layouts and advanced infrastructure. Several rooftops are fitted with solar panels, indicating energy-efficient operations, while surrounding areas include access roads, parking zones, and additional industrial developments under construction. The facility is strategically located near main roads and greenery, showcasing the growth of high-tech industrial property and sustainable development within Kedah’s expanding industrial landscape.
Source: StarProperty


What This Means for Property Investors

For investors, the Kedah property market requires a more selective and strategic approach.

Short-term:

  • Residential remains stable

  • Commercial and industrial show softness

  • Supply pressures are increasing

Long-term:

  • Industrial sector likely to rebound

  • Infrastructure will drive demand

  • Strategic locations outperform generic developments



Investors should focus on economic drivers rather than headline growth figures, particularly when evaluating different approaches to property investment in Malaysia.


Kedah Property Market in the Context of Malaysia

Within the broader property market Malaysia, Kedah represents a more affordable and emerging regional market.

Unlike Klang Valley or Penang, Kedah’s growth is:

  • less speculative

  • more infrastructure-driven

  • more dependent on economic corridors



This positions Kedah as a market where opportunities are not immediate, but potentially significant over time.



For broader national context, Bank Negara Malaysia’s economic outlook highlights continued structural shifts in regional development and investment patterns.

Key Takeaways

  • Residential sector remains the strongest performer

  • Overhang levels are rising across multiple segments

  • Commercial and industrial sectors are in a short-term adjustment phase

  • Large-scale infrastructure projects support long-term growth

  • Market performance is becoming increasingly selective



Conclusion: Kedah Property Market Is A Selective but Emerging Market



The Kedah property market in 2026 is not defined by rapid growth, but by changing dynamics and increasing selectivity.

For investors, the opportunity lies in understanding:

  • where demand is shifting

  • which sectors are transitioning

  • how infrastructure will influence future growth



Rather than chasing short-term trends, those who focus on long-term economic drivers may be better positioned to benefit from Kedah’s evolving property landscape.

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Real Estate Executive, Research & Consultancy

Job Description
This candidate would be positioned under the Corporate Advisory Division. He / She is expected to be a highly self-motivated individual, team player with excellent communication skills and actively participate in both departments and company’s discussions and events.


The candidate is to actively support research, valuation, and advisory functions. The role offers exposure to real estate analysis, transactions, and consultancy projects while working alongside an experienced team.

Key Responsibilities

  • To gather, process and analyse real estate transaction data.
  • To assist in market research, property analysis, and feasibility studies.
  • To be involved in undertaking market surveys, preparing reports, presentations, and proposals for clients and internal teams.
  • Participate in site visits, inspections, and data collection.
  • Jointly ensure all data bank updated and well maintained.
  • Support senior team members in client meetings and business development.
  • To keep abreast on the relevant market updates relating to real estate industry and local economic performance.

Requirements

  • Diploma or higher in Real Estate, Estate Management, Property Management or related field.
  • 1 – 3 years of relevant experience in real estate research, valuation, or consultancy; fresh graduates with strong analytical skills are welcome.
  • Basic knowledge of real estate markets, property valuation, and transaction processes.
  • Strong numerical, analytical, and attention-to-detail skills.
  • Proactive, organized, and able to work independently and in a team.
  • Good communication and interpersonal skills.
  • Own transport, valid driving licence, and willingness to travel for site visits and client meetings.

 

Kindly state your expected salary upon application. Salary negotiated and offered shall be based on candidates experience and capability.

 

Interested candidates are welcome to apply for this position. Kindly email your CV and expected salary.

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Marketing Executive

Job Description:

This candidate would be positioned under the Research and Consultancy Department. He / She is expected to be a highly self-motivated individual, team player with excellent communication skills and actively participate in both departments and company’s discussions and events.

He / She is expected to have full knowledge and understanding of the way the Research and Consultancy Department works in order to relay the best impression of the department’s product and services to the prospect clients.

Marketing Executive:

  • Perform all marketing duties (prospect planning, marketing pitch presentation, and follow through marketing progress)
  • Assist HOD in preparation of marketing materials and kits relating to product and services provided by the department.
  • To identify and manage good rapport with relevant/potential JV partners for prospect client’s land bank future development.
  • To implement & execute all marketing strategies approved.
  • To organize, coordinate, follow up and monitor the prospect clients’ business growth and keeping good rapport with the prospect clients.
  • To understand and compile customers' feedback and requirements for future improvements of product & services offered.
  • To prepare monthly marketing progress report.

Requirements:

  • Candidate must possess at least Bachelor’s Degree/Post Graduate Diploma/Professional Degree in Business / Property Development/Real Estate Management or equivalent.
  • Must be a team player with strong analytical skills and good working etiquette
  • Natural communicator with excellent negotiation, persuasive and interpersonal skills at all levels as well as effective presentation skills.
  • Candidate with related work experience with good command of English is preferred. Proficiency in Mandarin is an added advantage.
  • Willing to travel and possess own transport.

Interested candidates are welcome to apply for this position. Kindly email your CV and expected salary

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REGISTERED VALUERS


Requirements

  • Candidate must possess at least a Professional Certificate in Property Development/Real Estate Management or equivalent.
  • Must have a registered license with the Board of Valuer, Appraisers and Real Estate Agents Malaysia which allows the candidate to practise as a Registered Valuer or Estate Agent.
  • At least 2 year(s) of working experience in the related field is required for this position.
  • Applicants must be willing to work in Kuala Lumpur/Melaka
  • Successful candidates will be offered an attractive remuneration package with incentive scheme and prospects of partnership in the company.
  • Applicants should be Malaysian citizens.

Interested candidates are invited to submit a detailed resume including personal details, qualification, working experience, present & expected salary, a recent passport-sized photograph and contact number either by mail, e-mail. Please click contact us button

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