by Vic Sithasanan
One of the most important shifts in the National Housing Policy 2026–2035 unveiled by the housing minister Nga Kor Ming recently is that the housing conversation is moving beyond how many homes Malaysia builds, towards whether we are building the right homes, at the right price, in the right locations for the people who need them.
Homeownership aspiration remains strong among many Malaysians. We want that aspiration to translate into housing choices that households can realistically afford and sustain.
The urgency is clear. In Q1 2026, Malaysia recorded 32,801 completed unsold residential units, marking the sixth consecutive quarter of rising overhang. Of these units, 46.9% were priced at RM300,000 or below. That tells us affordability cannot be defined by headline price alone. Income, financing eligibility, location, access to employment and transport, property type, maintenance costs, and a household’s ability to sustain the commitment all shape whether a home is genuinely suitable and affordable. Lower-priced supply does not automatically mean suitable supply.
At the same time, homeownership intent remains meaningful. PropertyGuru Malaysia’s H1 2026 Consumer Sentiment Study found that 56% of surveyed Malaysians intend to buy a home in Malaysia within the next two years, while around 65% of intending buyers have budgets below RM500,000. The task is therefore not simply to increase supply, but to improve the alignment of property type, price, location, and financing readiness.
This is why the policy’s move towards more data-driven housing planning is particularly encouraging. Using demographic, income, market, and demand data at a more localised level can help identify not just how many homes may be needed, but what type of homes, at what price points, and in which locations.
Making better demand intelligence available to industry players could also help developers make more informed decisions earlier in the development cycle. Better data can lead to better decisions about what gets built before mismatches emerge.That same principle of using technology to support better decisions is increasingly shaping the wider property ecosystem. Across PropertyGuru and iProperty, we are applying technology and AI to make property discovery more intuitive and help consumers and industry partners navigate property decisions with greater clarity.
As property platforms, we see another part of that demand picture through the way consumers search, shortlist, and enquire about homes. These platform signals are not substitutes for official transaction, demographic, or household data, but they can complement them by providing a view of what consumers are actively exploring and considering. Bringing different sources of intelligence together can give policymakers and the industry a fuller picture of housing demand.
The policy’s recognition that Malaysians also need different pathways to secure housing is equally important. A stronger regulatory framework for residential rentals can provide greater clarity for both renters and landlords, while mechanisms such as Rent-to-Own and shared ownership can broaden the routes towards homeownership.
Rental search activity has consistently outnumbered sale search activity over the past year. Separately, our study found that 49% of respondents who currently rent intend to buy within two years. Searches indicate consumer interest rather than completed transactions, but together with our survey findings, they point to a more fluid housing journey. Renting can serve different needs at different stages, while homeownership remains an aspiration for many consumers.
Implementation will be the real test of the policy. A meaningful measure will be whether new housing is taken up, financially sustainable for households, and better matched to the communities it is intended to serve.
If data-led planning enables government and industry to identify mismatches earlier and respond more precisely to local needs, that would be meaningful progress towards a more efficient and consumer-responsive housing market.
Vic Sithasanan, Managing Director – Malaysia, PropertyGuru and iProperty
