THE Government is stepping up efforts to ensure home ownership for every Malaysian, with a target to deliver one million affordable homes under the 13th Malaysia Plan (RMK-13), scheduled from 2026 to 2035.
According to a property sector review by BIMB Securities, the initiative represents a clear, multi-year policy drive to boost homeownership among low- and middle-income households.
“For those without a fixed income, such as gig economy workers or the self-employed, the government provides a lifeline through a RM10 billion Housing Credit Guarantee Scheme (SJKP),” the report stated.
“This guarantee fund is aimed at assisting some 20,000 borrowers, including those without formal income documentation, to secure housing financing that has traditionally been difficult to obtain.”
The plan is further supported by attractive financial incentives, including full stamp duty exemptions for properties priced below RM500,000.
Tax relief on mortgage interest is also offered, with up to RM7,000 for homes under RM500,000 and up to RM5,000 for properties valued between RM500,000 and RM750,000, for sale and purchase agreements signed from 1 January 2025 to 31 December 2027.
BIMB Securities highlighted that key MADANI government programmes, including the People’s Residence Programme (PRR), Residensi Madani, Rumah Mesra Rakyat (RMR), and PR1MA, will drive domestic construction activity.
These measures are expected not only to accelerate the construction sector but also to broaden the supply of comfortable and affordable homes for the majority of Malaysians.
As of August 2025, the Ministry of Housing and Local Government (KPKT) had achieved 98.8 per cent of the 500,000-unit target under RMK-12.
The next phase will place greater emphasis on young buyers, ensuring that Malaysia’s youth are not left behind in property ownership.
From a market perspective, prospective buyers can expect stable prices.
The Malaysia House Price Index recorded only a slight year-on-year increase of 0.1 per cent to 229.1 points, with the average home price at RM494,384, indicating a controlled pricing environment.
This stability is supported by healthy growth in housing loans, which rose 6.1 per cent to RM877.9 billion as of October 2025.
Data shows that consumer purchasing power is increasingly directed toward mid-range properties priced between RM250,000 and RM1 million, which have seen positive financing growth.
Property values are also expected to benefit from major infrastructure projects.
The East Coast Rail Link (ECRL), now 89 per cent complete, has begun boosting property values near its stations, while the Johor-Singapore RTS Link, set to commence operations in 2027, is anticipated to stimulate demand in the southern corridor.
In Johor, economic restructuring through the Johor-Singapore Special Economic Zone (JS-SEZ) and the New Industrial Master Plan (NIMP 2030) is driving demand for industrial and logistics properties.
The presence of data centres, advanced manufacturing, and modern logistics hubs is attracting new foreign investment, benefiting developers with strategically located land.
The retail sector is also showing a strong recovery, with shopping mall occupancy rising to 78.6 per cent from 77.6 per cent the previous year, aided by increased tourist arrivals and adjustments to civil service and minimum wages, which have strengthened domestic spending in major retail centres.
Against this backdrop, BIMB Securities maintains an ‘Overweight’ outlook on Malaysia’s property sector, expecting the market to remain resilient in 2026.
Investors are advised to focus on developers specialising in affordable housing and urban projects, such as Mah Sing Group Bhd, Lagenda Properties Bhd, and Sime Darby Property Bhd, as primary beneficiaries of government policy. - December 18, 2025
