KUALA LUMPUR: Malaysia's residential property market could face mounting pressure in 2027 as declining housing loan approval rates, tighter lending practices and the prospect of higher borrowing costs weigh on homebuyer demand.
JLL Malaysia managing director Jamie Tan said the potential increase in Bank Negara Malaysia's overnight policy rate (OPR) next year could affect residential property demand, given that most homebuyers rely on mortgages to finance their purchases.
"Therefore, any increase in borrowing costs will have implications for the residential sector and Malaysia's overall real estate market," he said at JLL Malaysia's Q3 2026 property market briefing today.
The potential interest rate headwind comes amid signs of weakening mortgage accessibility.
