Are Malaysian Homes Becoming More Affordable?

Introduction: Why It Feels So Confusing

If you ask whether homes in Malaysia are becoming more affordable, most people will hesitate.

Because honestly, it doesn’t feel clear.

On one side, you keep hearing that house prices are going up. On the other, there are still many completed units sitting empty, especially in certain areas. So naturally, people start asking: if homes are too expensive, why aren’t they selling? And if they’re not selling, shouldn’t prices come down?

The reality is, both things are happening at the same time. And that’s where the confusion comes from.

The issue today isn’t just about price. It’s about whether what’s being built actually matches what people can afford: and what they are willing to buy.

It’s Not Just About Price: It’s About Income

A lot of people focus on house prices, but affordability doesn’t work like that.

What really matters is how those prices compare to income.

Globally, a home is usually considered “comfortable” when it costs around three to five times your annual income. In Malaysia, especially in cities, many homes are already above that range.

This is where the pressure starts to build.

And the group that feels it the most is the middle-income group. They’re in a tricky position. They don’t qualify for most affordable housing schemes, but at the same time, the type of homes being launched: especially in the RM500,000 to RM700,000 range: are not exactly easy to commit to either.

So what happens?

They delay buying. Or they compromise: maybe on location, maybe on property type, sometimes both.

The “Average Price” Doesn’t Tell Your Story

You’ve probably seen headlines saying the average house price is around RM490,000.

But that number doesn’t really reflect what most buyers are going through.

Why? Because it mixes everything together: apartments, terrace houses, even luxury homes. When more expensive properties are sold, the average goes up, even if entry-level homes haven’t changed much.

So when people say “prices are increasing,” it’s not always the full picture.

If you’re a first-time buyer, the average price doesn’t matter as much as this:

What can you actually afford to buy today?

And that answer can look very different depending on your situation.

What Unsold Units Are Really Telling Us

If you want a clearer view of affordability, don’t just look at prices. Look at what’s not selling.

Most of the unsold completed units today are high-rise properties: condos and apartments: and many are in that mid-range price band.

That’s quite telling.

It shows that while supply is there, it’s not always in the range that buyers are comfortable with.

From a developer’s perspective, this makes sense. Projects in this range usually offer better returns and are easier to push through. But from a buyer’s perspective, it creates a disconnect.

So you end up with this situation: Homes are available: but not quite at the right price, or not in the right place, or not the type people really want.

Government Efforts: Helpful, But Not a Complete Fix

There have definitely been efforts to improve affordability.

Programmes like PR1MA and other state-level schemes have helped create more options at lower price points. Financing has also become a bit more flexible, especially for those without fixed monthly income.

And these do help: particularly if you’re open to buying an apartment in certain locations.

But they don’t solve everything.

Some affordable projects are not in areas people prefer. At the same time, developers still focus more on higher-margin projects because that’s what makes business sense.

And then there’s the bigger issue: income growth hasn’t really kept up with housing costs.

So even with all the support measures, the gap is still there.

So… Are Homes More Affordable or Not?

The honest answer?

It depends on what you’re looking for.

If you’re open to apartments, especially within the RM300,000 to RM500,000 range, things have improved slightly. There are more options now, and getting financing is a bit more manageable than before.

But if you’re aiming for a landed home in a good, established area, affordability hasn’t really improved. Prices are still high, and supply is limited.

That’s why the market feels so mixed.

Because for some people, it is getting easier.

For others, it still feels just as difficult as before.

Conclusion: It’s Not One Market Anymore

Maybe the better way to think about this is that we’re no longer dealing with one single market.

We’re dealing with different segments moving in different directions.

Some are becoming more accessible. Others are not.

So instead of asking, “Are homes affordable?”, the better question is:

Affordable for who: and for what type of property?

Once you look at it that way, the contradiction starts to make sense.

And more importantly, it helps you make better decisions: based on your situation, not just headlines.