Malaysia

Affordable housing to take centre stage in Budget 2026 - Amir Hamzah

Focus on rent-to-own schemes and ‘build-then-sell’ model among key housing reforms aimed at addressing unsold units and increasing homeownership

Updated 9 months ago · Published on 04 Sep 2025 4:49PM

Affordable housing to take centre stage in Budget 2026 - Amir Hamzah
Increasing homeownership opportunities for lower and middle-income groups would be central to the government’s housing agenda (Photo from NSTP) - Sept 4, 2025

THE government will prioritise affordable housing in its upcoming Budget 2026, with new support mechanisms to be introduced as part of broader reforms under the 13th Malaysia Plan (RMK13), according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

“In the coming Budget in October, we will look at other support mechanisms to help us achieve our housing reform goals. The priority is for those seeking affordable homes. This is an area we will be focusing on,” he said.

He emphasised that increasing homeownership opportunities for lower and middle-income groups would be central to the government’s housing agenda, especially amid rising concerns over unsold completed residential units.

Among the key measures under consideration is the expansion of the rent-to-own model, which allows aspiring homeowners to rent properties with the option to purchase later. This approach targets those who cannot yet afford outright purchase or qualify for full housing loans.

The government also aims to reduce the risk of abandoned housing projects by promoting the ‘build-then-sell’ concept as an alternative to the current progressive payment system, which often leaves buyers vulnerable when developers fail to complete projects.

Speaking after launching the 2025 Mid-Year Property Market Report and the upgraded Property Information System Malaysia (PRISM) 2.0, Amir Hamzah acknowledged the recent uptick in unsold completed units but insisted that the overall market remains stable.

According to the latest report from the Valuation and Property Services Department (JPPH), the number of unsold completed residential units rose to 26,911 in the first half of 2025, with a total value of RM16.44 billion. This represents a 16.3 per cent increase in volume and a 17.9 per cent rise in value compared to the second half of 2024, which recorded 23,149 units worth RM13.94 billion.

Despite this, Amir Hamzah said the government remains committed to supporting the housing segment and will continue exploring strategic policies to address supply-demand imbalances.

“We are looking at the data closely and taking a targeted approach to ensure housing remains accessible while also ensuring the property market does not become overly burdened with unsold stock,” he said. - Sept 4, 2025

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