KUALA LUMPUR: Challenges in Malaysia’s housing market are driven not just by affordability but by a deeper mismatch of supply and demand, coupled with weak age-based data.
Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu said 32,801 completed residential units worth RM16.37bil remained unsold nationwide in the first quarter of the year, according to the National Property Information Centre (Napic).
She said nearly half of the unsold units, 15,401 homes or 46.9%, are priced at RM300,000 and below, showing that even lower-cost housing is not fully absorbed by the market.
“The issue is not limited to affordable housing alone. More than 53% of unsold units are in the higher price category, reflecting a broader mismatch across market segments," she told the Dewan Rakyat on Monday (June 29).
Aiman Athirah said the situation highlights a structural gap in Malaysia’s housing ecosystem, where supply does not fully align with location, income levels and buyer readiness.
She added that Malaysia currently lacks comprehensive data on home ownership among those under 35, as official statistics are compiled by income groups rather than age or constituency.
"This limits our ability to precisely design targeted housing policies for young Malaysians," she said.
However, she said 2024 data showed home ownership among lower-income households (D1 to D4 income groups) stood at 76.3%, indicating relatively high ownership rates within that segment.
The ministry said efforts are underway to strengthen a national integrated housing data repository under the 13th Malaysia Plan to improve policy accuracy and better identify gaps in demand.
They added that future housing planning will focus on three key pillars: improving affordability access, strengthening financing systems, and reducing supply-demand mismatches across regions and price segments.
Responding to concerns over rising construction costs, the ministry said house pricing cannot be determined solely by building expenses, but must balance affordability for buyers with sustainability for developers.
The ministry also reaffirmed ongoing initiatives such as credit guarantee schemes and step-up financing to improve access for first-time buyers, particularly young households.
Lawmakers during the debate highlighted that while Malaysia’s overall home ownership rate remains relatively high, ownership among younger Malaysians continues to lag significantly, underscoring what they described as a growing generational gap in housing access.
"The upcoming National Housing Policy will place stronger emphasis on data-driven planning, housing inclusivity and aligning supply with real demographic needs under the Madani framework," Aiman Athirah told the august House.
