PETALING JAYA: As Malaysians await Budget 2026, the local property market is at a crossroads, said PropertyGuru and iProperty country manager for Malaysia, Kenneth Soh.
The 13th Malaysia Plan (13MP), he said sets ambitious housing reform goals, including the delivery of one million affordable homes by 2035, but the real test lies in translating this ambition into measures that address what the market is experiencing today.
“We observe that demand for affordable housing remains strong, particularly for homes priced below RM300,000. As of September 2025, more than 20,500 properties nationwide are listed on PropertyGuru under this threshold, with about 2,500 in Kuala Lumpur alone,” he added.
Soh said affordable housing is not just about hitting numerical targets, but ensuring homes are realistically within reach for households.
“Our platform data shows encouraging resilience in buyer behaviour. Enquiries for homes under RM300,000 surged by 27.3% from April to June 2025 and remained steady through July, reflecting the positive impact of policy support and stabilising sentiment. While there was a dip between December 2024 and September 2025, where enquiries for homes under RM300,000 fell by 8.7% amid economic uncertainty, this recent rebound highlights that Malaysians are quick to re-engage when they see both opportunity and stability in the market” said Soh.
Demand for affordable homes is highest in Kuala Lumpur, Selangor, Johor and Penang – states where jobs, infrastructure, and amenities are concentrated.
Budget 2026, Soh said, could have an outsized impact by encouraging the development of mid-priced, transit-linked homes in these high-demand corridors.
In the meantime, rent-to-own (RTO) schemes provide a practical bridge for many families. For the lowest B40 households, where rental affordability hovers around RM1,500, well-structured RTO programmes offer a path to eventual ownership while addressing immediate housing needs.
“Affordability alone will not future-proof Malaysia’s property sector. Increasingly, Malaysians are asking for homes that are not only affordable, but also environmentally sustainable, energy-efficient, and socially responsible.
“Recent developments in the market show how developers are beginning to integrate such principles into their projects, from preserving large tracts of green space within township master plans to embedding low-carbon and smart-city features that enhance liveability while reducing environmental impact,” said Soh.
At the same time, he continued, new buildings are attaining top-tier green certifications, showcasing advances in design that deliver measurable benefits in energy, water and resource efficiency. These developments indicate that sustainability is not an abstract ideal but an achievable standard thatcan be scaled across the sector. This aligns with global ESG priorities and can reduce long-termcosts for households while safeguarding asset values.
“Budget 2026 could help accelerate the shift by incentivising the adoption of green building technologies, from rooftop solar panels and water-efficient systems to industrialised building systems that cut waste and speed up construction. At the same time, policies that encourage retrofitting existing housing stock with energy-saving upgrades would lower monthly outgoings for families while extending the lifespan of older properties,” said Soh.
He added that creating frameworks for liveable, mixed-income communities supported by transit, education, and healthcare access ensures housing policy contributes to broader national goals of inclusivity and mobility. Clearer disclosure of building performance standards, such as energy ratings and maintenance fund health, would also boost buyer confidence and encourage better stewardship of assets over time.
By integrating environmental, social and governance considerations into housing policy, Soh said, Malaysia can build not only more homes,but better homes that are efficient, resilient, and aligned with the country’s long-term development trajectory under 13MP.
“Budget 2026 is more than a fiscal exercise. It is an opportunity to reflect the realities of the market and the aspirations of Malaysians. By focusing on affordability, aligning supply with real demand, and embedding sustainability at the heart of housing delivery, the government can ensure that the vision of 13MP translates into tangible outcomes,” he concluded.