KELANA JAYA: Malaysia’s housing challenges have become quite complex, with 32,800 completed homes worth RM16.37 billion sitting unsold as of first quarter 2026.
Nearly half of these unsold units, about 15,400 homes or 46.9%, are priced at RM300,000 and below.
Despite these staggering numbers, Real Estate and Housing Developers’ Association Malaysia Institute (Rehda Institute) chairman Datuk Jeffrey Ng said, many Malaysians are still struggling to find homes they can afford.
“If we have tens of thousands of completed homes sitting empty while Malaysians cannot find affordable housing, our challenge is not simply about building enough affordable homes.
“We need to ask: Are we building the right homes, in the right locations, at the right price points, for people who actually need them?
“The fact that nearly 47% of unsold units are under RM300,000 – what we traditionally call ‘affordable’ – should make us rethink.
“If even homes in the affordable price range are not selling, then price alone cannot explain the problem. We must also look at location, connectivity, household needs, access to financing, and whether what we are building actually matches local demand,“ Ng told reporters at the Regional Housing Conference 2026 and prelaunch of the Housing For All: Co-Creating A Needs Driven Framework today.
He also said the planning of sustainable cities, such as the use of land, retaining nature, delivering infrastructure and using technology, is all part of the same housing ecosystem.
“To tackle traffic congestion that seriously affects work productivity, we must balance urban sprawl and encourage more public transport use.
“Homes located further from the city may have lower purchase prices, but truly affordable housing goes beyond the sticker price – it must include the cost of living and lifestyle in that location.
“Transit-oriented development matters because Malaysia’s major rail investments create opportunities to re-align housing, transport and urban planning so people can live closer to jobs, services, facilities and amenities.
Ng said Rehda Institute’s latest research publication will be officially launched by Housing and Local Government minister Nga Kor Ming on July 28.
The key findings of the report will be presented on July 29 during the Regional Housing Conference.
Unveiling a snapshot preview of Rehda Institute’s latest study entitled “Housing For All: Co-Creating A Needs-Driven Framework”, Ng said that for Malaysians of all income levels to keep owning homes, housing policies must follow real needs and real data, not just old rules.
He said past policies did help many people own homes, but Malaysia has changed – with population numbers, incomes and lifestyles that are different now.
The report highlights some big shifts in Malaysia, with Bumiputera now making up 70% of citizens, up from 61% in 1991.
The biggest group of households earn RM3,000-RM4,999 a month, which points to an “affordable” house price range of about RM200,000-RM300,000.
Households earning RM13,000 or more per month have tripled since 2014.
Because of these changes, Ng said, rigid and outdated housing rules no longer fit the reality on the ground.
The study’s key findings show that middle-income (M40) households are under growing pressure. For the first time, their home ownership rate has fallen below that of the B40.
“Cross-subsidisation – where open-market homes help fund price-controlled units – has pushed up prices for regular buyers, especially the middle class.
Policies have not kept pace with changing demand, resulting in many unsold units, including homes we label ‘affordable’”, Ng said.
To address these challenges, the report calls for a more dynamic, data-driven framework. This includes reviewing housing quotas and policy requirements regularly, based on real market data, and reducing excessive cross-subsidisation so that the M40 are not unintentionally “punished”.
Further, it calls for integrating national housing data, using systems such as HIMS, DOSM, Napic, Teduh, MUO and Padu, so that policymakers can make decisions based on complete, up-to-date information.
The study also stresses that while everyone has a role in affordable housing, including the government, banks, developers and industry, social and public housing should remain mainly government-led.
“It supports the idea of a single national housing agency to coordinate housing matters more effectively, backed by better data and closer collaboration across agencies,“ Ng said.
The upcoming Regional Housing Conference 2026 aims to tackle a central question on how Malaysians can build a housing ecosystem that is equitable, resilient and aligned with 21st century urban realities.
Organised by Rehda Institute in strategic partnership with the Ministry of Housing and Local Government (KPKT) and held alongside the Asean Real Estate Conference, the regional housing conference will bring together specialists from the University of Cambridge, Hong Kong and Singapore, plus senior representatives from Malaysia’s housing, planning, transport and finance agencies.
Delegates will benchmark international practice and translate global insights into practical, implementable solutions for Malaysia – from improved affordability metrics to reforms in delivery and financing.
Under the theme “Housing Impact on Sustainable Urban Development and City Planning”, sessions will showcase how artificial intelligence, integrated data platforms and digital twins can detect demand mismatches early, optimise phasing and reduce the number of unsold completed stock.
Panels will explore modernised affordability measures that factor in mortgage access, household structure, and location efficiency – enabling better-targeted subsidies, land release, and policy calibration.
