PUTRAJAYA: Malaysia needs to rethink how housing affordability is defined, as a single price benchmark may no longer reflect what households can actually afford in different parts of the country, says Housing and Local Government Minister Nga Kor Ming.
“Previously, affordable housing had a fixed price of RM300,000, but how can a house in Bukit Bintang be equivalent in price to a house in Kuala Krai, Kelantan?
“It is clear that the price of an affordable home does not have a ‘one-size-fits-all’ answer.”
Nga said this during an engagement session with Star Media Group (SMG) at the Housing and Local Government Ministry yesterday, where he received the StarProperty Budget 2027 Roundtable Report.
He said affordability should not be viewed solely from the selling price of a property, but should also consider factors affecting a household’s actual ability to own a home.
“To address this, the Housing and Local Government Ministry is developing a policy that uses big data analytics to better price affordable housing by region and income.
“Real estate is a form of wealth preservation and creation that is a pillar of our economic development. We have to strike a balance between appreciating property prices and keeping houses affordable for the rakyat,” Nga added.
The StarProperty report similarly recommended moving away from blanket nationwide or statewide affordable housing price caps towards a more localised approach based on median incomes and land costs within individual local council areas.
The report was prepared as an industry contribution towards Budget 2027 following StarProperty’s fourth Budget roundtable, involving developers and industry representatives from across the country, including Sabah and Sarawak.
It covers six areas – housing affordability and market stability, urban liveability, home financing, demand-led urban planning, regulatory efficiency and infrastructure and approval processes in Sabah and Sarawak.
Nga also welcomed the industry’s input, saying, “On behalf of the ministry and the Government of Malaysia, we appreciate and welcome all the constructive suggestions offered by all parties. The Housing and Local Government Ministry has always been a strong believer of championing people- private-public partnership.”
The report highlighted that affordability extends beyond the purchase price, with infrastructure costs, financing accessibility, approval delays and maintenance expenses ultimately affecting the cost of home ownership.
Among the recommendations were targeted infrastructure funding, improved financing support for first-time and non-fixed- income buyers, support for ageing low-cost strata schemes and a centralised digital system to streamline multi-agency development approvals.
The engagement with the ministry follows SMG’s recent presentation of the same report to Treasury Secretary-General Tan Sri Johan Mahmood Merican at the Finance Ministry on Aug 26.
The engagements are part of SMG’s efforts to bring industry perspectives directly to policymakers responsible for the fiscal, regulatory and housing issues affecting Malaysia’s property sector.
The report stressed that housing affordability requires action on both sides of the equation – improving Malaysians’ ability to finance a home while addressing structural costs that contribute to higher property prices.
