15/03/2026
Ali: Eh Ah Hock, if Iran war really happens, will it affect Malaysia property prices?
Ah Hock: Actually yes… but not in the way most people think.
Ali: I thought only oil price will go up?
Ah Hock: That’s the usual answer. But there are a few less obvious ways it could affect our property market.
Ali: Like what?
Ah Hock: First — safe-haven capital.
When there’s instability in the Middle East, some investors move their money to countries that are more stable.
Malaysia fits quite well:
• Muslim-friendly country
• English-speaking environment
• Lower living cost
• Foreigners can buy property
So some money could flow into property here.
Ali: Wah then all property prices will go up?
Ah Hock: Not really.
Foreign buyers usually don’t buy cheap apartments.
They normally buy:
• RM1m – RM3m condos
• New serviced apartments
• Units easy to rent to expatriates
Places like Mont Kiara, KLCC, or Bangsar might see more demand.
But RM300k–RM500k apartments?
Maybe not much change.
Ali: Okay that makes sense. What’s the second one?
Ah Hock: International students.
If the Middle East becomes unstable, some students may avoid going to the US or Europe.
Malaysia becomes a cheaper alternative.
Ali: Then property prices near universities will go up?
Ah Hock: Not immediately.
Students rent, they don’t buy.
So what usually goes up first is rent.
Areas like Sunway, Subang, or Serdang could see stronger rental demand.
If rent stays high for a few years, then investors may start buying more properties there.
Ali: Interesting. What’s the third effect?
Ah Hock: Muslim-friendly tourism.
If the Middle East becomes tense, some tourists prefer travelling to safer Muslim-friendly destinations.
Malaysia could benefit from that.
Ali: How does that affect property?
Ah Hock: Mainly short-stay properties.
Serviced apartments used for Airbnb in places like:
• Bukit Bintang
• KL city
• Langkawi
• Penang
If tourist numbers increase, short-stay income improves.
Then investors may start buying more of these units.
Ali: So you’re saying the whole property market won’t go up?
Ah Hock: Exactly.
If these things happen, the market might move like this:
• Luxury condos → stronger demand
• University areas → higher rent
• Tourist areas → better Airbnb returns
• Normal residential areas → maybe no change
That’s why sometimes you hear “property market is recovering”, but many homeowners feel nothing has changed.
Because in reality, property markets rarely move all together.
Usually, only certain segments move first.