Despite increased construction and new property launches in 1Q25, Malaysia saw a 6.2% drop in transaction volume and an 8.9% fall in value, indicating a potential mismatch between supply and actual demand. Analysts suggest this could be due to projects planned during more optimistic times now materializing as buyers become more cautious due to economic uncertainties and stricter lending. While one analyst points to a long-standing supply-demand imbalance in affordable housing, another notes that the construction surge reflects past confidence from strong 2024 results. Despite the overall transaction dip, residential sales still constitute a majority, and terraced home prices rose. Analysts believe the Q1 slowdown might be temporary, citing typical early-year quietness and global uncertainties, expecting a rebound in later quarters, driven by stable fundamentals and developers' confidence in new launches.