Govt unveils housing policy shift, big data to cut oversupply and drive affordable homes

The Malaysian government has announced a new National Housing Policy 2026-2035, aiming to address oversupply, improve affordability and better align housing needs with local demands. Housing Minister Nga Kor Ming stated that planning will now be based on local needs, market demand and location, reducing unsold properties in the future.

The policy, themed "Humanising Housing," addresses challenges like rising living costs, demographic changes, and unsold housing projects through six focus areas and 59 action plans. A key element is the use of big data analytics to assess housing needs down to district and location levels, aligning affordable housing prices with local incomes.

Developers may eventually use this data to determine the type, price, and location of homes that best match local demand. Big data analytics will also help set affordable housing prices according to the needs and affordability of individual districts. The policy proposes mechanisms like Rent-to-Own, Shared Ownership, Fixed Rate Mortgage and the existing Housing Credit Guarantee Scheme to expand home ownership opportunities.

It also aims to enact a Residential Tenancy Act to regulate the rental market and promote transit-oriented development, optimizing public transport access. The government intends to incorporate modern technologies, such as AI and Building Information Modelling, to improve productivity and decision-making in housing development. Additionally, the policy emphasizes inclusive and age-friendly housing for senior citizens and people with disabilities, as well as strengthening strata community management.