As Malaysians await Budget 2026, the property market is at a crossroads. The 13th Malaysia Plan (13MP) sets ambitious housing reform goals, including the delivery of one million affordable homes by 2035, but the real test lies in translating this ambition into measures that address what the market is experiencing today.

Recent market data shows both challenge and opportunity. According to the National Property Information Centre (NAPIC), Malaysia’s property transaction volume fell by 1.3% in H1 2025 to 196,232 transactions, while transaction value rose by 1.9% to RM107.68 billion. These figures suggest a mixed market with fewer transactions but higher overall value, reflecting cautious buyer sentiment alongside resilient pricing. This points to a market waiting for renewed clarity and support.

We observe that demand for affordable housing remains strong, particularly for homes priced below RM300,000. As of September 2025, more than 20,500 properties nationwide are listed on PropertyGuru under this threshold, with about 2,500 in Kuala Lumpur alone. Yet many of these homes are existing housing stock further from public transportation services or require significant renovation, highlighting that affordability is about more than price alone.