THE government has said housing affordability should not be assessed using a single national price benchmark, as it seeks a more comprehensive approach that reflects regional income levels and the broader financial burden of home ownership.
Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu said the government recognised the growing challenges faced by young Malaysians and households across all income groups in purchasing homes, including rising renovation costs, maintenance expenses and other post-purchase financial commitments.
She said the ministry acknowledged that various internationally recognised approaches were used to assess housing affordability, including the median multiple methodology.
"Through this method, a house is generally considered affordable when its price is around three times the median annual gross household income.
"Therefore, the government is of the view that housing affordability should not be measured based solely on a single national price," she said during Question Time in the Dewan Rakyat.
She was responding to a supplementary question from Syed Saddiq Syed Abdul Rahman (MUDA-Muar), who asked whether the government had taken into account the additional financial burden faced by young people, particularly first-time homebuyers, arising from renovation, maintenance and related services that are now subject to additional service tax.
Aiman Athirah said increasing the supply of affordable housing remained one of the government's key priorities, alongside expanding access to more inclusive housing finance.
She cited the Housing Credit Guarantee Scheme (SJKP) as an example, noting that eligible buyers could obtain financing of up to 120 per cent of a property's value.
"For example, through the Housing Credit Guarantee Scheme (SJKP), financing of up to 120 per cent is permitted. This means that if a house is priced at RM100, the additional 20 per cent financing can be used to cover costs such as renovations and related expenses," she said.
She added that the government continued to evaluate a range of measures aimed at helping young Malaysians purchase their first homes.
"However, these efforts require a comprehensive approach involving all stakeholders, including the Federal Government, state governments and private developers.
"This matter is always given due attention and we will continue to examine appropriate measures to ensure young people have the ability to own their first home while supporting their family livelihoods," she said.
The government said improving housing affordability would require coordinated policies that increase the supply of affordable homes, broaden access to financing and better reflect the actual cost of home ownership across different regions of the country. - July 14, 2026
