KUALA LUMPUR, June 29 — Malaysia is facing a continued mismatch in the housing market, with tens of thousands of completed homes remaining unsold even as affordability challenges persist, the Ministry of Housing and Local Government told Dewan Rakyat today. 

According to its deputy minister Datuk Aiman Athirah Sabu, data from the National Property Information Centre (NAPIC) shows that 32,800 completed residential units remained unsold in the first quarter of 2026, with a total value of RM16.3 billion.

“Of this total, 15,400 units or 46.9 per cent consist of homes priced at RM300,000 and below. The remaining 53.1 per cent are homes priced above RM300,000. 

“This shows that unsold housing is not limited to affordable housing alone, but is also influenced by a broader mismatch between supply and demand across different market segments,” she said.

She was responding to a question from Puncak Borneo MP Datuk Willie anak Mongin on the number of unsold affordable homes by state and price category, as well as home ownership rates among people aged under 35 by state and parliamentary constituency.

On home ownership among young Malaysians aged 35 and below, she explained that specific age-based data is not available under current official statistics, as the Department of Statistics Malaysia (DOSM) compiles home ownership figures by income group and locality rather than age or parliamentary constituency.

Based on 2024 data, the ministry said households in the lower income groups (deciles 1 to 4) recorded a home ownership rate of around 76.3 per cent.

“Income deciles refer to the classification of households into ten groups based on income, with D1 representing the lowest income group and D10 the highest. 

“Generally, D1 to D4 represent lower income households, D5 to D8 middle income, and D9 to D10 high income households,” she said. 

She said the ministry recognised that housing affordability challenges among young people and first-time buyers require a more comprehensive approach, as the government strengthens an integrated national housing data repository under the 13th Malaysia Plan to support more accurate policy planning.

At the same time, she said the National Housing Policy is being finalised, focusing on four key areas, namely providing housing that is more responsive to public needs, strengthening the housing financing ecosystem, enhancing integrated housing data systems, and reducing the mismatch between housing supply and demand.

On whether the ministry will review affordable housing price ceilings given rising construction costs of about 30 per cent, Aiman Athirah said house pricing cannot be determined by construction costs alone, and must balance affordability for buyers with the sustainability of development for developers.

To support affordability, she said the government has introduced housing mapping using median household income by state and district, based on DOSM data and the median multiple method to determine realistic affordability ranges.

She then added that several financing initiatives are also in place, including the Housing Credit Guarantee Scheme and step-up financing schemes to help low and middle income groups, as well as young buyers, purchase their first homes.