National Housing Policy 2026-2035: What Changes for Buyers?

Introduction: What Does a 10-Year Housing Policy Mean for You?

Ten-year policies rarely feel relevant to someone trying to buy a house this year.

 

They are long, they are broad, and they tend to be written for the industry rather than the individual. It is easy to skim the headlines, note that the government plans to build more homes, and move on.

 

That would be a mistake with the National Housing Policy 2026–2035.

 

This policy does more than set construction targets. It touches on how affordability is defined, how troubled projects are managed, how developers are held accountable, and how buyers can access financing. Those are not abstract concerns. They shape what you can afford, what you can trust, and what you sign.

 

KPKT has set a target of one million affordable homes by 2035. That number will get the headlines. But the more useful question is this: which parts of the policy could actually change the way you buy, finance, or live in a home?

 

Here are the shifts that matter.

 

The Big Shift #1: Affordable Housing Is About More Than the Price Tag

For years, "affordable housing" has been defined by a price range. If a property falls below a certain threshold, it qualifies. That approach has always been imperfect.

 

The new policy takes a different view. It looks at actual household affordability rather than a fixed national definition.

 

What does that mean in practice? Affordability will consider household income, local property prices, supply and demand, and the differences between locations. A property that is affordable in one district may not be affordable in another, even if the price tag is identical.

 

The implication for buyers is significant. The label "affordable housing" will carry less meaning on its own. What matters more is whether the property is affordable for you, in your location, given your income and commitments.

 

This is a more honest way to look at housing. It also puts more responsibility on buyers to assess their own position rather than relying on a category.

 

Consider a practical example. A RM400,000 apartment in a mature urban area might be considered affordable on paper. But if it adds two hours of commuting to your day, or if the monthly instalment consumes 45% of your household income, the label does not help you. The policy recognises this.

 

If you are shopping today, stop asking whether a property qualifies as affordable. Start asking whether you can service the loan comfortably after accounting for your existing commitments. 

 

That calculation has always mattered more than the label.

 

The Big Shift #2: From Building More Homes to Fixing Troubled Projects

Malaysia has a long history of abandoned and delayed housing projects. The issue is not new. What is new is the level of attention it is receiving.

 

KPKT has set a target of zero abandoned private housing projects by 2030. The government reports that 1,647 sick and abandoned projects were rehabilitated between January 2023 and June 2026, covering 192,912 housing units.

 

Those numbers represent real buyers who were stuck waiting, paying loans on properties they could not occupy. For many, the financial and emotional cost was severe.

The policy now supports stronger monitoring, digital systems, and legal reforms to improve project delivery. This includes better oversight of developers, earlier intervention when projects show signs of distress, and clearer consequences for those who fail to deliver.

 

For buyers, this changes the due diligence checklist. Developer track record and project status are becoming just as important as price and location. In some cases, more important.

It is no longer enough to like the show unit and the location. You need to know who is building it, what they have delivered before, and whether the project is progressing on schedule. A cheaper property in a poorly managed project is not a bargain. It is a risk.

 

The policy is trying to reduce that risk. But it cannot eliminate it. Buyers still need to check the developer's past projects, visit the site, and talk to existing owners if possible. These steps take time, but they are far cheaper than dealing with an abandoned project later.

 

The Big Shift #3: New Rules Could Change Developer Accountability

The policy proposes several legal reforms that, if implemented, would change how the housing industry operates.

 

A proposed Property Development Act would create a broader legal framework for property development, covering areas that current legislation does not address comprehensively. This includes clearer rules on project delivery, buyer protection, and developer obligations.

 

Changes to strata legislation are intended to improve governance and transparency in how Joint Management Bodies and Management Corporations operate. Buyers who have dealt with dysfunctional JMBs will understand why this matters. Disputes over maintenance fees, mismanagement of funds, and poor upkeep of common areas are common problems. Stronger governance would benefit owners directly.

 

A proposed Residential Tenancy Act could also clarify the rights and responsibilities of landlords and tenants. Malaysia has lacked a comprehensive tenancy law for a long time. If this comes to pass, it would bring more structure to a sector that has operated largely on custom and contract.

 

These reforms are still in development. They are not yet law. But they signal a direction. The government is moving towards stronger consumer protection and clearer accountability.

 

For buyers, the practical takeaway is this. The legal environment around property is likely to change over the next few years. Some of those changes will benefit you. Understanding them early puts you in a better position to plan.

 

The Big Shift #4: More Ways to Get Into Homeownership

Access to financing has always been the biggest hurdle for first-time buyers. The policy acknowledges this and expands the options available.

 

The SJKP financing guarantee ceiling has been increased to RM40 billion in 2026. The scheme is designed for buyers who struggle with conventional financing—gig workers, freelancers, self-employed individuals, and those without fixed salary documentation.

 

For buyers in these categories, SJKP can be transformative. It provides a government guarantee that reduces the lender's risk, making approval more likely for profiles that would otherwise be rejected. The scheme covers new properties, existing properties, and even auction purchases.

 

Step-up financing is another mechanism being used to help younger buyers manage repayments in the earlier years of a loan. The structure typically starts with lower monthly installments that increase over time, aligning with expected income growth.

 

This can be helpful for buyers early in their careers. But it requires honest assessment of your future income prospects. If your salary does not grow as expected, the later years of the loan could become difficult to manage.

 

Rent-to-own schemes are also being explored and expanded, including through KPKT's PPR programmes and potential cooperation with financial institutions. For buyers who cannot yet qualify for a mortgage, RTO offers a path to ownership that does not require a large upfront down payment.

 

These are meaningful options. They are also not without trade-offs. RTO schemes vary in structure, and the terms matter enormously. Some are genuinely helpful. Others are less favourable than they appear.

 

The availability of these schemes does not remove the need to understand what you are committing to. Make sure the structure fits your circumstances, not just your immediate needs.

 

The Big Shift #5: Budget 2026 Gives First-Time Buyers Some Breathing Room

Budget 2026 introduced several measures that directly benefit first-time buyers.

 

The full stamp duty exemption for qualifying first-home purchases up to RM500,000 has been extended until 31 December 2027. This is not a small saving. On a RM450,000 property, the stamp duty exemption can save you close to RM10,000.

 

That money can go towards renovation, moving costs, or simply reducing the size of your loan. For first-time buyers stretching to afford a home, it makes a real difference.

 

First-time buyers may also claim housing loan interest tax relief of up to RM7,000 or RM5,000, depending on the property price and subject to the relevant conditions. Over the early years of a loan, this relief reduces the effective cost of borrowing.

 

SJKP provides another financing route for eligible buyers, including purchases of new, existing, and auction properties. That last category is worth noting. Auction properties have traditionally been harder to finance. SJKP-backed financing opens a door that has been closed to many buyers.

 

These incentives reduce the cost of buying. But they come with conditions, deadlines, and eligibility requirements. The stamp duty exemption expires at the end of 2027. The tax relief has its own criteria.

 

Do not assume you qualify. Check the details with your banker or lawyer before you make decisions based on them.

 

What About Foreign Buyers?

From 1 January 2026, the stamp duty rate on residential property transfers by non-citizens and foreign companies increased from 4% to 8%. Permanent residents are excluded from the higher rate.

 

This is a significant increase. It will affect foreign demand, particularly in market segments where foreign buyers account for a larger share of transactions.

 

It would be a mistake, however, to assume this automatically translates into lower property prices for Malaysians. The relationship between foreign demand and local pricing is more complicated than that.

 

In some segments, particularly high-end condominiums in prime locations, foreign buyers have been a meaningful part of the market. A higher stamp duty may reduce their participation. 

 

Whether that leads to price adjustments depends on how sellers respond and how much local demand exists to absorb the supply.

 

In other segments, foreign buyers are barely present. The stamp duty increase will have little to no effect. Local demand dynamics will continue to drive prices.

 

For most Malaysian buyers, this change is unlikely to have a direct effect on your purchase. But it is worth understanding if you are buying in a segment where foreign buyers are active. It may influence how sellers price and how quickly properties move.

 

Conclusion: The Policy Helps But It Doesn't Choose Your House for You

The National Housing Policy 2026-2035 moves the housing conversation beyond simply building more homes, with greater focus on affordability, project delivery, financing and housing governance. Alongside immediate measures such as Budget 2026 incentives, these changes could shape how Malaysians buy, finance and assess property over the coming years.

For buyers, however, policy does not replace due diligence. What matters is how these changes affect your own purchase: whether the property is genuinely affordable, whether the developer and project are reliable, which financing options you qualify for and which incentives actually apply to you. The policy may create opportunities, but your decision still needs to be based on your own numbers, not the headlines or government targets.