PETALING JAYA: Home affordability in Malaysia remains stable despite rising
living costs, said Real Estate and Housing Developers’ Association (Rehda) president Datuk Ho Hon Sang.
He said according to National Property Information Centre data, the residential property market reached a 10-year high in the third quarter of this year, with 70,520 transactions valued at nearly RM29 billion.
“This demonstrates resilience in the market despite global uncertainties.”
He added that Malaysia’s home ownership rate, which stood at 76.5% in 2022, also reflects stability, and that while there is room for improvement, the situation is far from dire.
Acknowledging challenges for young professionals to purchase houses, he said the EPF Belanjawanku 2024/2025 report estimated that a single person in the Klang Valley needs RM2,800 monthly for basic living costs, which leaves little for savings.
“Young adults, especially early in their careers, need time to save for a home.
“Wage increments and bonuses in many industries could help professionals achieve homeownership goals.”
Ho said government schemes such as PR1MA and MyHome as well as measures in Budget 2025, such as the Step-Up Financing Scheme for youths that offers lower repayment rates for the first five years, are pivotal in enabling homeownership.
However, he called for better coordination between state and federal agencies to prevent redundancy.
“Local authorities and developers should conduct demand analyses to ensure projects meet market needs.”
Rehda also urged the government to fully manage affordable housing.
“Cross-subsidisation, in which free-market buyers offset affordable housing costs, impacts market health.”
Ho suggested tailoring local authority requirements for price-controlled housing to community demand.
“Rehda foresees technological adoption and large-scale infrastructure projects boosting housing demand. However, inflation, subsidy removal and higher taxes may pose challenges.
“Innovative practices and environmental, social and governance principles are essential to meet market demand.”
However, Universiti Putra Malaysia Putra Business School Assoc Prof Dr Ida Md Yasin disagreed that home affordability is stable, and highlighted a significant gap between supply and demand in the Klang Valley.
“The cost of living is rising faster than incomes, and while there is demand for affordable homes, developers are prioritising expensive properties, leaving many Malaysians unable to enter the housing market.”
She said this led to developers complaining that Malaysians were not buying homes, yet the solution of selling to foreigners does not address the issue for Malaysian families.
Ida emphasised the importance of consistent regulations, pointing out that past rules such as the requirement for developers to build homes with at least three rooms have been discarded.
“Smaller units like 600sq ft and 700sq ft are too cramped for families. These regulations should not change too often, as any good policy should remain in place to address the needs of Malaysians.”
Young professionals like Justin Leong, 26, are finding homeownership increasingly challenging, not just due to high property prices but also because almost all houses are sold unfurnished. He said the high price of houses is already a concern and the additional expense of furnishing an empty house adds to the financial burden.
“If I buy an empty house, it’s pointless because I’ll have to spend on furniture and essentials. The costs just keep piling up.”
Leong suggested that developers consider offering furnished units with built-in wardrobes, kitchen cabinets and basic appliances.
“Young people like us, especially those early in our careers, often struggle to balance expenses, forcing many to delay or abandon plans to buy a home.
“If properties were fully furnished, I believe they would be more attractive, encouraging people to come, take a look and possibly buy.”
