KUALA LUMPUR: Budget 2026 presents a crucial opportunity to narrow the persistent gap between housing supply and demand in Malaysia.
PropertyGuru and iProperty Malaysia country manager Kenneth Soh stated that supporting mid-market projects in high-demand urban corridors would better align new housing supply with household needs.
He emphasised that encouraging redevelopment of underutilised areas and streamlining approvals through digitalisation are key measures to achieve this.
“The challenge in Malaysia lies in ensuring that housing supply is both adequate and aligned with the needs of home seekers.”
“Some projects target higher price points, leaving gaps in the mid-market segment where the majority of aspiring buyers are searching.”
Soh cited National Property Information Centre data showing new residential launches plummeted by 46% in the first half of 2025 to just 23,380 units.
Simultaneously, the number of unsold completed homes surged by 16.3% to 26,911 units valued at 18.6 billion ringgit.
Demand for affordable housing remains particularly strong for properties priced below 300,000 ringgit.
PropertyGuru currently lists more than 20,500 properties nationwide under this price threshold, with approximately 2,500 located in Kuala Lumpur alone.
“Yet many of these homes are existing housing stock further from public transportation services or require significant renovation.”
“This highlights that affordability is about more than price alone.”
Location proves critical for affordable housing demand, with Kuala Lumpur, Selangor, Johor, and Penang showing the strongest interest.
Budget 2026 could significantly impact the market by encouraging mid-priced, transit-linked home development in these high-demand areas.
Rent-to-own schemes provide a practical bridging solution for many families unable to purchase homes immediately.
Well-structured rent-to-own programmes offer a path to eventual ownership for B40 households with rental affordability around 1,500 ringgit monthly.
Soh noted that affordability alone will not future-proof Malaysia’s property sector as buyer expectations evolve.
Malaysians increasingly seek homes that are environmentally sustainable, energy-efficient, and socially responsible alongside being affordable.
Budget 2026 could accelerate this shift by incentivising green building technologies like rooftop solar panels and water-efficient systems.
Industrialised building systems that reduce construction waste and speed up project completion represent another area for potential support.
Policies encouraging retrofitting existing housing with energy-saving upgrades would lower monthly costs for families while extending property lifespans.
“Budget 2026 is more than a fiscal exercise.”
“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 the 13th Malaysia Plan translates into tangible outcomes.”
The 13th Malaysia Plan sets an ambitious target of delivering one million affordable homes by 2035. – Bernama